OPERATIONAL POLICY MANUAL OF QPSTECC 

I. THE ORGANIZATION 
1. GOVERNING RULES and REGULATIONS 
1.1  The  Cooperative  shall  be  governed  by  R.A.  9520,  an  act  amending  the Cooperative Code of 
the  Philippines  to  be  known  as  “Philippine  Cooperative  Code  of  2008”,  all  issuances  of  CDA 
with  regard  to  primary  cooperatives  and  its  articles  of  cooperation  and  by-laws  duly  amended 
and adopted by its General Assembly and approved by the CDA. 
1.2 Nothing included in this policy manual is to be in conflict with the rules and 
regulations as identified in (1.1) above. 
1.3  The  policy  of  Cooperative  shall  be  to  emphasized  it  as  a  membership  organization  and,  as 
such,  it  is  the  policy  of  the  cooperative  to  provide  constant  communications  to  members  and 
openness within the constraints of the law. 
2. BOARD OF DIRECTORS, OFFICERS, MANAGEMENT 
2.1 Provisions of the Cooperative’s by-laws relating to the Board of Directors, 
officers, and management are supplemented as follows: 
a) Article 42 of the Philippine Cooperative Code of 2008 provides: 
Officers  of  the  Cooperative.  The  board  of  directors  shall  elect  among  themselves  the 
chairperson  and'  vice-chairperson,  and  elect  or  appoint  other  officers  of  the  cooperative 
from  outside of the board in accordance with their by-laws. All officers shall serve during 
good  behavior  and  shall  not  be  removed  except  for  cause  after  due  hearing.  Loss  of 
confidence  shall  not  be  a  valid  ground  for  removal  unless  evidenced  by  acts or omission 
causing  loss  of  confidence  in  the  honesty  and  integrity  of  such  officer.  No  two  (2)  or 
more persons with relationship up to the third civil degree of consanguinity or affinity nor 
shall  any  person  engaged  in  a  business  similar  to  that  of  the  cooperative  nor  who  in  any 
other  manner  has  interests  in  conflict  with  the  cooperative  shall  serve  as  an  appointive 
officer." 
CDA  MEMORANDUM  CIRCULAR  NO.  2011-04  [APPROVED  ON  FEBRUARY  22, 
2011]  –  LEGAL  INTERPRETATION  OF  ARTICLE  42  OF  THE  PHILIPPINE 
COOPERATIVE CODE OF 2008 (R.A. 9520) 
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A. Officers of the Cooperative as provided under Art. 5 (11) of RA 
9520: 
1) Members of the Board of Directors; 2) Members of the different committee created by 
the 
general assembly; 3) General Manager or the Chief Executive Officer; 4) Secretary; 
5) Treasurer; and 6) Members holding other positions as may be provided for 
the by-laws of the cooperative. B. Officers elected by the General Assembly: 
1) Members of the Board of Directors; and 2) Members of the Audit and Election 
Committee. C. Officers appointed by the Board of Directors: 
1) Treasurer; 2) Secretary; 3) Members of the Mediation and Conciliation Committee; 4) 
Members of the Ethics Committee; 5) Members of Other Committees unless otherwise 
provided 
in the by-laws; and 6) Members of the Board of Directors appointed by the remaining 
directors for vacancy other than expiration of term (Article 41 of RA 9520) 
Under  Article  42,  there  is  no  prohibition  for  elected  officers  with  relationship  up  to  the 
third  civil degree of consanguinity or affinity to hold the aforesaid elected positions in the 
same  cooperative  provided  they  have  been  elected  by  the  General  Assembly.  These  are 
the officers referred to in paragraph B hereof. 
The prohibition applies to the officers referred to in paragraph C hereof. There shall be no 
two  (2)  persons  or  more  with  relationship  up  to  the third civil degree of consanguinity or 
affinity  to  hold  any  of  the  abovementioned  appointed  positions  in  the  same  cooperative. 
However,  an  elected  officer  can  have  one  (1)  appointed  relative  within  the  third  civil 
degree  of  consanguinity  or  affinity  provided  that  under  no  circumstance  shall  there  be 
relationship  up  to  the  third  civil  degree  of  consanguinity  or  affinity among the appointed 
officers. 
With  respect  to  husband  and  wife  since they are considered as "one person with the same 
interest"  (Report  of  the  Commission  of  the  Family  Code,  page  25),  the  prohibition  on 
appointive officers shall apply to them likewise. 
For reference, hereunder are the degrees of relationship covered by said prohibition: 
1. Relationship by Consanguinity 
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First Degree - Parent to Child Second Degree - Grandparent to Grandchild, Brother to Sister 
Third Degree – Uncle to Child, Aunt to Child, Great-Grandparent to Great Grandchild 
2. Relationship by Affinity 
First Degree – Parent-in-law to Daughter/Son-in-law Second degree – Brother-in-law to 
Sister-in-law Third Degree - Great-Grandparent-in-law to Great Granddaughter/Great 
Grandson-in-law, Uncle/Aunt in-law to Niece/Nephew in-law. 
b) The Management Staff shall not be considered as an officer of the 
cooperative in accordance with CDA Memorandum Circular No. 2011-04. 
c) The Cooperative Secretary and Cooperative Treasurer must not be an 
employee of the cooperative. 
3. ORGANIZATIONAL STRUCTURE 
3.1 The organizational structure of this Cooperative is shown in Appendix A. 
3.2 Each year immediately after the elections, all newly elected officers shall assume 
their post exactly ten (10) days after they have been elected. 
3.3  Outgoing  officers  must  turn  over  all  documents,  cash  and  any  related  financial  matters,  and 
properties belonging to the cooperative to the Cooperative Secretary for clearance within ten (10) 
days after a successor has been elected or appointed to replace them. 
3.4  The  regular  or  standing  committees  of  this  Cooperative  are:  the  Audit  Committee,  Election 
Committee,  Education  and  Training  Committee,  Mediation  and  Conciliation  Committee,  Ethics 
Committee and the Oversight Committee. 
3.6 The Vice-Chairman of the Board shall always be the Chairman of the Education 
and Training Committee. 
3.7 The Board can form or create other committees or special committees as the 
business and operations of the Cooperative so requires. 
3.8.  The  Chairman  and  members  for  each  special  committee  may  be  any  member,  officer  or 
employee  of  the  Cooperative.  Special  Committee  shall  exist  less  than  nine  months  and  after 
services should be terminated. 
3.9 The Chairman of the Board shall also be the chairman of the Executive Committee. 
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3.10 The treasurer and one member of the Board of Director shall be the chairman 
of the budget and finance. 
3.11 The Executive Committee shall be notified of all committee meetings. 
4. RELATIONS WITH THE LOCAL GOVERNMENT UNITS 
4.1  The  Cooperative  will  inform  the  local  government  unit/s  (LGUs)  within  its  area  of  its 
operations  so  as  to  keep  key  local  officials  informed  of  the  cooperative’s  services,  policy issues 
and decisions. 
4.2 The autonomous nature and the principle of subsidiarity are to be respected by 
both the cooperative and the LGUs. 
5. RELATIONS TO OTHER COMMUNITY / OTHER COOPERATIVES 
5.1 It is the policy of Cooperative to provide the best service possible to all 
individuals in its field of membership. 
5.2  Cooperative  does  not  consider  it  necessary  to  merge  with  other  cooperatives  but  will 
cooperate  with  other  existing  cooperatives  engage  in  similar  activities  to  assist  all  people 
considered part of the common bond. 
6. RELATIONS TO COOPERATIVE ORGANIZATIONS WITH CREDIT 
ACTIVITIES 
6.1  It  is  the  policy  of  this  Cooperative  to  take  advantage  of  all  possible  assistance  from 
organization  with  credit  services.  Participation  in  federations,  unions,  chapter,  league,  and other 
association affairs is anticipated. 
6.2 The Boards’ prime responsibility is to its members, and not to any other group. 
6.3 Dues and other payments to organizations shall be approved by the Board as 
part of the annual budget function. 
7. COMPENSATION – JOB CLASSIFICATIONS, etc. 
7.1  The  General  Manager  shall  assist  the  Board  of  Directors  in  identifying  the 
management  staff  and  it  is  the  Board  of  Directors  that  shall  approved  the  creation  of  such 
position and shall provide the required funding. 
8. AUTHORIZATION 
The  authorizations  included  in  this  section  are  to  be  adopted  each  year  by  the  Board  at  the 
annual  organization  meeting  as  part  of  the  total  policy  manual  in  accordance  with  the  foreword 
of  the  policy  manual.  Specific  authorizations prescribed below plus the annual salary schedule is 
to be reproduced in the minutes of the organization meeting. 
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8.1 Bank 
The Chairman of the Board, Manager and Treasurer will coordinate with the 
bank. All deposits and withdrawals require the signature of the Treasurer. 
8.2 Attorney 
The  Chairman  shall  deal  directly  with  Attorneys  for  their  services  in  behalf  of  the  cooperative 
subject  to  the  approval  of  the  General  Assembly  for  appropriate  funding  and  specific  services 
required. 
8.3 Cooperative Borrowing 
The  cooperative  through  the  Board  of  Directors with the approval of the General Assembly may 
borrow  money  from  any  source  at  the  best  term  and condition available and in such amount that 
may be needed. 
8.4 Bond 
The  Board  of  Directors  shall  identify  members,  officers  and  or  management  staff  for  adequate 
bonding  in  order  to  ensure  the  faithful  performance  of  their  duties  and  for  the  protection  of  the 
cooperative  financial  properties.  The  Board  of  Directors shall determine the amount of bond and 
shall order the Treasurer to pay such bond chargeable to the cooperative fund. 
8.5 Safety Deposit Box 
The  Board  of  Directors  shall  give  full  authority  to  the  General  Manager  in  using  the  Safety 
Deposit  Box  and  shall  consist  of  all  cash  collected  that  does  not  immediately  deposited  to  the 
bank, Blank Checks Bonds, Share Certificate, Original Documents and other Legal Documents. 
8.6 Legal Papers – Signatures 
The  Chairman  of  the  Board  shall  sign  all  Share  Certificates  and  such  other  instrument  and 
documents  requiring  his/her  signature  unless  other  signatory  are  authorized  by  the  Board  of 
Director. 
8.7 Representatives 
The  Board  of  Directors  shall  issue  resolution  designating  any  member  of  the  cooperative  to 
represent their organization for transacting business and other affairs. 
8.8 Notices 
The  Secretary  shall  issue  notice  of  meeting  of  the  Board  of  Directors  and  General  Assembly. 
Notice  of  any  Regular  or  Special  General  Assembly  Meeting  shall  be  posted  at  the office of the 
cooperative and sent to member addresses. 
Written  notices  for  Regular  or  Special  Board  of  Directors  Meeting  unless  dispense  with,  shall 
be  served  personally  through  an  agent  or  by  mail,  upon  each  Director  at  his/her  address  at  least 
five (5) days before the said meeting. 
8.9 Receipts 
The Cashier is hereby authorized to issue official receipt of the cooperative. 
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8.10 Correspondent 
The Chairman of the Board is hereby authorized to sign all outgoing communication or 
correspondent using the letter head of the cooperative. 
The Vice Chairman upon order of the majority of the Board of Directors is given the same 
authority. 
8.11 Fund System 
All funds of the cooperative can only be utilized by the majority of the Board of Directors based 
on  specific  provisions  in  the  By-  Laws  of  the  cooperative  and  or  CDA  Memoranda  /  issuances 
and as provided for in RA 9520. 
8.12 Membership Fee 
The Cashier is hereby authorized to receive membership fee. 
8.13 Equipment Purchases 
The General Manager is hereby authorized to procure equipment for the use of cooperative 
subject to the approval of said items in the budget. 
8.14 External Auditor 
The  Board  of  Director  is  hereby  authorized  to  choose  who  shall  provide  External  Auditing 
Services  to  the  cooperative  subject  to  the  CDA  guidelines  for  external  auditing  of  the 
cooperative. 
9. REGULAR and SPECIAL MEETINGS OF THE BOARD 
9.1 Preparation and Distribution of Agenda 
a)  It  shall  be  the  joint  responsibility  of  the  Chairman  of  the  Board,  and  the  Secretary  of  the 
cooperative to prepare the agenda for distribution in advance of all meetings. 
b) The Chairman of each committee shall submit monthly reports to the 
Secretary before each regular Board meeting. 
c)  The  Manager  and  staff  of  the  cooperative  shall  consolidate  all  reports  and  prepare  the 
necessary exhibits, and supporting documents for each meeting for distribution with the agenda. 
9.2 Notification of Board and Committee Members 
a)  It  shall  be  the  responsibility  of  the  Secretary  of  the  cooperative  to  provide  written  notice  at 
least five (5) days in advance of any regular Board meeting. 
b)  The  Chairman  or  in  his  absence the Vice-chairman or a majority of the directors can call for a 
special  meeting.  Special  meetings  will  normally  be  preceded  by written or verbal notice or SMS 
at  least  five  (5)  days)  in  advance.  Where  notice  of  five  (5)  days  is  given,  the  majority  of  a 
quorum of the Board shall be adequate to take action. 
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c)  In  the  event  of emergency, the Chairman or in his absence the Vice- chairman or a majority of 
the  directors  can  call  for  an  emergency  meeting.  A  written  notice  at  least  three  (3)  days  in 
advance  shall  be  given  to  each  Board  member.  The  vote  of  at  least fifty (50) percent of the total 
number of the Board shall be necessary to take action at such an emergency meeting. 
9.3 Schedule 
a) Regular Board meetings shall be held every 3rd Friday of each month, 
unless announced to the contrary in advance. 
9.4 Duration 
a) Regular and Special Board meetings must not be more than six (6) hours. 
10.5 Venue 
a) Venue of the Board meeting shall be at the principal office of Cooperative, 
unless announced to the contrary. 
10.6 Absent in Regular and Special Board Meeting 
a)  Except  while  on  official  travel  to  represent  the  Cooperative,  those  who  failed  to  attend  the 
meeting  shall  be  considered  absent.  Accumulating  three  (3)  absences  consecutively  or  a  total of 
five  (5)  absences  within  a  year  without  justifiable  cause  are  grounds  for  termination  of 
directorship. 
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II. BOARD and MANAGEMENT RELATIONS 
1. THE BOARD OF DIRECTORS 
The  Board  of  Directors  is  ultimately  and  unescapably  responsible  for  all  the  strategic 
planning  direction  setting  and  policy  formulation  of  the  Cooperative.  To  carry  out  this 
responsibility they must: 
a) Develop a manual of operational policies and procedures; b) Select competent management; 
and c) Conduct periodic performance review of the operation of the cooperative, 
existing policies and caused for the audit of the cooperative. 
1.1 A director of a cooperative is, by definition, one who directs. 
1.2 Among the detailed responsibilities of directors is as follows: 
a) Meet every month; b) Approve membership applications; c) Establish an annual budget and 
work plan, have it approved by the General Assembly; d) Establish interest rates and have the 
General Assembly approved of the expenditures; e) Authorize necessary bond coverage and 
depositories for funds; f) Determine the percentage of the net surplus less statutory funds that 
will go 
for interest on share capital and patronage refund; g) Declare dividends and establish 
reserves; h) If the Board has a quorum, fill vacancies on the Board and for committees whose 
members are appointed by the Board of Directors between annual meetings; i) Elect annually the 
Chairman and Vice-Chairman of the Board, Education, Training & Membership, Mediation and 
Conciliation, Ethics and remove them for cause; j) Maintain working relationship with the 
cooperative’s management staff, 
committees and membership; l) Approve members’ application for withdrawal of share 
capital or 
termination of membership within sixty (60) days; m) Review progress of Cooperative in 
serving the needs of the members; n) Plan for long-term development needs of the cooperative; 
o) Identify investment opportunities for the cooperative and have it approved 
by the General assembly; 
1.3 Conflict Of Interest 
a)  When  matters  pertaining  to the specific personal interest of a board member are discussed, the 
affected  board  member  or  members  shall  not  engage  in  the  discussion  nor  shall  he/she/they 
participate  in  the  vote,  and the minutes shall so state. If more than one board member is involved 
in matters involving a conflict of interest and a vote is called, the number of voting 
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must exceed the quorum requirements for the meeting or unanimous action is required of the 
voting board members. 
b)  Examples  of  conflict  of  interest  situations would be action to reduce interest on the obligation 
of  a  relative,  lease  or purchase land for the purpose of erecting an office where the land is owned 
by a director, etc. 
c) No Director should compete with the business and /or services of the 
cooperative for patronage within the membership. 
1.4 No Relatives Within Officers 
It  is  the  policy  of  this  Cooperative  and  in  accordance  with  RA  9520,  no  officer  of  the 
cooperative  (refers  to  the  Board, all appointed committees, the secretary and treasurer) should be 
related to each other up to the third degree of consanguinity or affinity. 
In  the  event  that  there  are  officers  related  to  each  other within the 3rd degree, only one must 
remain as an officer while the rest must resign their position. 
2. THE MANAGER 
a)  Oversee  the  overall  day  to  day  business  operations  of  the  cooperative  by  providing  general 
direction, supervision, management and administrative control over all the operating departments 
subject  to  such  limitations  as  may  be  set  forth  by  the  Board  of  Directors  or  the  General 
Assembly; 
b)  Formulate  and  recommend  in  coordination  with  the  operating  departments  under  his/her 
supervision,  the  Cooperative’s  Annual  and  Medium  Term  Development  Plan,  programs  and 
projects, for approval of the Board of Directors and ratification of the General Assembly; 
c) Implement the duly approved plans and programs of the cooperative and any 
other directive or instruction of the Board of Directors; 
d)  Provide  and  submit  to  the  Board  of  Directors  monthly  reports  on  the  status  of  the 
cooperative’s  operation  vis-a-vis  its  targets  and  recommend  appropriate  policy  or  operational 
changes, if necessary; 
e) Represent the cooperative in any agreement, contract, business dealing, and in any 
other official business transaction as may be authorized by the Board of Directors; 
f) Ensure compliance with all administrative and other requirements of regulatory 
bodies; and 
g) Perform such other functions as may be prescribed in the By-laws or authorized by 
the General Assembly. 
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3. THE BOARD and THE MANAGER 
3.1  The  board  and  the  manager  can  carry  out  their  functions  properly  only  by  effective 
coordination  and  cooperation  with  each  other.  They  must  achieve  and  maintain  a  full 
understanding  on  issues  of  central  importance  to  the  cooperative  and  its  members.  The  regular 
monthly  meeting  and  the  discussions  which  take  place  on  that  occasion  can  be  one  of  the 
principal means for achieving the necessary coordination. 
3.2  It  is  the  decision  of  the  board  of  directors  that  the  board  meetings  are  closed  to  member 
participation  for  the  protection  of  the  members’  interests  due  to  the  confidentiality  of  the 
deliberations. 
3.3 At least once a year, a special planning and coordination meeting will be held. This meeting 
is not to consider the usual business, but is to be devoted exclusively to planning and 
coordination, and will be conducted according to the following agenda: a) Statement on “State of 
the Cooperative” by the manager, and b) Discussion of key issues as they relate to the coming 
year(s). 
4. MANAGEMENT STAFF 
The management staff of the cooperative shall include the following: 
1) Manager 2) Accountant/Bookkeeper 3) Cashier 4) Loan Officer 5) Account Analyst/Records 
Clerk 6) Member Service Representative 7) Utility Man/Messenger 
5. ABSENCE OF THE MANAGER 
Order of acting authority. a) Accountant/Bookkeeper b) The board of directors will take turn on a 
daily basis 
6. CODE OF ETHICS 
A  code  of  ethics  shall  be  adopted  in  principle  noting  that  the  priority  of  concern  is  for  the 
members and the cooperative in advance of cooperative movement. These notes shall accompany 
any publishing or release of the Code to the members. 
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 III. PATAKARAN PANGKAWANIHAN AT MGA 
GAWAING PAMPANGASIWAAAN 
I. PANIMULA 
Ang  patakarang  ito  ay  sumasaklaw sa mga transaksyon kaugnay sa paghirang, bilang ng oras 
ng  trabaho  at  “overtime”,  pagpapaunlad  ng  kakayahan  ng  kawani,  promosyon  o  “movement”, 
pagsubaybay  sa  pagganap  ng  kawani  sa  kanilang  responsibilidad,  pagdisiplina sa mga kawaning 
hindi  gumaganap  ng  maayos,  suweldo,  allowance,  honorarium  at  iba  pang  kompensasyon  at 
regulasyon para sa mga benipisyo at pribelihiyo. 
II. PAGHIRANG 
1. Ang paghirang ng Manager at mga Kawani ay nasa kapangyarihan at pagpapatibay ng Lupon 
ng Patnugot alinsunod sa mga katangiang kanilang itinakda o katangiang hinihingi ng pinaiiral 
na Saligang Batas ng Kooperatiba at CASA. 2. Ang Manager ay binibigyan din ng karapatan na 
pumili at mag-rekomenda ng karapat-dapat at naaangkop na kawani/mga kawani sa mga 
posisyong kinakailangan sa kooperatiba para pagtibayin ng BOD. 3. Ang may prioridad para sa 
mga bakanteng posisyon sa kooperatiba ay ang 
mga sumusunod: 
Unang priyoridad – mga kasapi Ikalawang priyoridad – anak ng kasapi Ikatlong priyoridad – 
kamag-anak ng kasapi Ika-apat na priyoridad – naninirahan sa “area of operation” ng 
kooperatiba at payag maging kasapi. Kung wala sa mga priyoridad ang isang aplikante subalit 
nagtataglay ng mga katangiang hinahanap sa posisyon, ang desisyon ay ipinauubaya sa BOD. 4. 
Ang mga hinirang na kawani ay dadaan sa anim na buwang “probationary period” kung saan ang 
kanyang “appointment” ay saka pa lamang pagtitibayin ng BOD kung naging maganda ang 
resulta ng BI at naging pagganap sa responsibilidad at tungkuling iniatang sa kanya. 5. Habang 
ang kawani ay nasa “probationary period”, siya ay: 
• tatanggap ng sahod tulad ng mga arawan; 
• lahat ng liban niya ay walang kaukulang bayad; 
•  lahat  ng  liban  gayundin  ang  “tardiness”  niya  ay  idadagdag  sa  bilang  ng  araw  ng  trabaho  niya 
upang mabuo ang anim na buwang ”probationary period”; 
6.  Matapos  ang  anim  (6)  na  buwang  “probationary  period”,  at  pinagtibay  ng  BOD  ang  kanyang 
“appointment” ang kawani ay tatanggap na ng regular na sahod base sa pinagtibay na “pay scale” 
gayundin ang “leave benefits”. 
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7.  Ang  kawani  ay  maaaring  tanggalin  sa  kooperatiba  bago  pa  man  matapos  ang  “probationary 
period” o kontrata kung hindi maganda ang ipinakikita nito. 
III. PROMOSYON O ‘MOVEMENT’ 
1.  Ang  promosyon  ay  bukas  sa  lahat ng kawani ng kooperatiba subalit ang lahat ng kandidato ay 
dadaan sa pagtutuos ng BOD ayon sa kanilang pinagtibay na mga pamantayan. 
2.  Ang  “movement”  o  paglilipat  ng  kawani  sa  ibang  puwesto  ay  maaaring  gawin  ng  Manager 
ayon sa pangangailangan o kanyang desisyon upang ilagay sa kaayusan ang takbo ng operasyon. 
IV. ORAS NG TRABAHO 
1.  Ang  lahat  ng  empleyado  ng  kooperatiba  ay  kinakailangang  gampanan  ang  kanyang 
tungkulin/responsibilidad  sa  kooperatiba  alinsunod  sa  umiiral  na  batas  ng  bansa  ng  walong  (8) 
oras bawat araw. 
2.  Ang  takdang oras ng trabaho sa kooperatiba ay simula 8:00am – 12:00 nn at 1:00pm – 5:00pm 
simula  Lunes  hanggang  Biyernes  o  limang  araw  sa  loob  ng  isang  lingo  ayon  sa  isinaayos  ng 
Manager upang magkaroon ng transaksyon tuwing araw ng Sabado. 
3.  May  pasok  ang  Holiday  (maliban  sa  Pasko,  Kuwaresma,  Hundras  at  Bagong  taon) 
upang  magkaroon  ng  pagkakataon  ang  mga  kasaping  mga  naka-empleyo  sa  ibang 
kompanya  na maki-pagtransaksyon sa kooperatiba. Exempted din dito ang mga kawaning 
nabanggit  sa  seksyon  3  ng  artikulong  ito  kung  saan  kailangan  ang  serbisyo  nila  kahit 
“holiday’.  Ang  ibang  mga  kawaning  papasok  ay  bibigyan  ng  “overtime  pay”  katumbas 
ng 125% ng kanyang regular na sahod. 
4.  Ang  pagpasok  ng  araw  ng  Linggo  o  oras  na  lampas  sa  itinakdang  oras  ng  pasok  ay maaaring 
ipatupad  ng  Manager  sa  mga  mahihigpit  na  pagkakataon.  Ang  mga  papasok  ay  bibigyan  ng 
125% na sahod. 
5.  Ang  “overtime”  ay  pagganap  sa  mga  tungkulin  ng  lampas  sa  itinakdang  oras  at  araw  ng 
trabaho  ay  maaari  ding  hilingin  batay  sa  pangangailangan.  Ang  mga  kawani  na  kailangang 
mag-“overtime”  ay  nararapat  na  may  pinagtibay  na  Kahilingan  sa  Pag-“Overtime”  na  nakasaad 
doon  kung  ano  ang  tanging  gawain  na  kanyang  gagawin  sa  rekomendasyon  ng  kanyang 
“Supervisor”. Sila ay pagkakalooban ng 125% ng kanilang suweldo. 
6.  Ang  mga  kawaning  nasa  “Official  Travel”  ay  hindi  na  “entitled”  sa  “overtime  pay”  subalit 
maaari silang pagkalooban ng “per diem” ayon sa pinagtibay na patakaran sa “travelling”. 
Page | 12 
 
7.  Ang  mga  gawain  tulad  ng  “rescue  operation”  o  pagliligtas  ng  mga  kagamitan  ng  kooperatiba 
sa  panahon  ng  kalamidad  tulad  ng  bagyo,  baha,  sunog,  pagputok  ng  bulkan  at  iba  ay  hindi 
ituturing na “overtime”. 
V. AKSYON PANG-DISIPLINA 
1.  Ang  mga  sumusunod  na  aksyon  pang-disiplina  ang  paiiralin  matapos  dumaan  sa  masusing 
imbestigasyon  ang  isang  kawani  o  opisyal  na  pinagsuspetsahang  sa  anumang  di  kanais-nais  na 
ginawa sa kooperatiba. 
a) GRAVE OFFENSES 
MGA KASO Unang Paggawa Ika-2 Paggawa a) Dishonesty Dismissal b)Gross 
neglect of duty Dismissal c) Grave Misconduct Dismissal d) Being notoriousl undesirable 
Dismissal e) Conviction of crime involving moral turpitude 
Dismissal 
f)Falsification of official documents 
Dismissal 
g) Physical or mental incapacity or disability due to vicious habits 
Dismissal 
h) Engaging direct or indirectly in coop political affairs 
Dismissal 
i)  Receiving  for personal use of a fee, gift, or other valuable thing in the course of official 
duties  or  in  connection  therewith  when  such  fees,  gift  or  other valuable thing is given by 
any  person  in  the  hope  of  expectation  of  receiving  a  favor  or  better  treatment  than  that 
accorded to other persons or committing act punishable under anti-graft laws. 
Dismissal 
j)  Contracting loans of money or other property from persons with whom the office of the 
employee has business relations. 
Dismissal 
k)Soliciting  or  accepting  directly  or  indirectly,  any  gift,  gratuity,  in favor, entertainment, 
loan  or  anything  of  monetary  value  which  in  the  course  of  his  official  duties  or  in 
connection with any 
Dismissal 
Page | 13 
 
operations being regulated by, or any transactions which may be affected by the functions 
of his office. The propriety or impropriety of the foregoing shall be determined by its 
value, kinship, or relationship between the giver and receiver and the motivation. A thing 
of monetary value is one which is evidently or manifestly excessive by its very nature. l) 
Disloyalty to the cooperative Dismissal m) Nepotism Dismissal n) Oppression 6 mos. 
Suspension Dismissal o) Disgraceful and immoral conduct 
6 mos. suspension Dismissal 
p) Inefficiency and incompetence in the performance of official duties 
6 mos. suspension Dismissal 
q)  Frequent  unauthorized  absences,  loafing  or  frequent  unauthorized  absences  from  duty 
during regular office hours. 1/ 
6 mos. suspension Dismissal 
r) Refusal to perform official duty. 
6 mos. suspension Dismissal 
s) Gross insubordination 6 mos. suspension Dismissal t) Conduct grossly prejudicial to 
the best interest of the service. 
6 mos. suspension Dismissal 
u)  Directly  or  indirectly  having  financial  interest  in  any  transactions  requiring  the 
approval of his office. 
6 mos. suspension Dismissal 
v)  Engaging  in the private practice of his profession unless authorized by the cooperative, 
provided that such practice will not be in conflict with his official functions. 
6 mos. suspension Dismissal 
w)  Disclosing  or  misusing  confidential  or  classified  information  officially  known  to  him 
by  reason  of  his  office  and  not  made available to the public, to further his private interest 
or give undue advantage to anyone or to prejudice the public interest. 
6 mos. suspension Dismissal 
Page | 14 
 
1/  Ang  isang  kawani  ng  coop  ay  ay  iko-konsiderarang  habitually absent kung siya ay nakagamit 
ng  di-pinahintulutang  liban  ng  higit  sa  tatlong  liban  sa  nilolooban  ng  tatlong  (3) buwan sa isang 
(1) semestre ng taon. 
Kung  ang  pagliban  ay  kaugnay  sa  pagkakasakit,  ang  Manager  ay  binibigyan  ng  laya  na 
mag-verify,  at  kung  siya  ay  hindi  nasisiyahan,  maaari  niyang  di  pagtibayin  ang  liban/leave. 
Ano’t  anuman,  ang  isang  Empleyado  ay  lumiban  bago  pa  pagtibayin ang kanyang pagliban, ang 
kanyang kahilingan sa pagliban ay hindi pagtitibayin. 
b) LESS GRAVE OFFENSES 
MGA KASO Unang Paggawa Ika-2 paggawa a) Simple neglect of duty 6 mo. 
suspension Dismissal b) Simple misconduct 6 mos. Suspension Dismissal c) Gross 
discourtesy in the course of official duty. 
6 mos. Suspension Dismissal 
d) Insubordination 1-6 mos. 
suspension 
Dismissal 
e) Habitual Drunkenness 1-6 mos 
suspension 
Dismissal 
g) Unfair discrimination in rendering public service 
1-6 mos suspension 
Dismissal 
c) LIGHT OFFENSES 
MGA KASO Unang 
paggawa 
Ika 2 paggawa 
Ika 3 paggawa a) Discourtesy in the course of official duties 
Reprimand 1-30 days 
suspension 
Dismissal 
b) Improper or unauthorized solicitations of contributions from subordinates. 
Reprimand 1-30 days 
suspension 
Dismissal 
c) Violation of reasonable office rules and regulations including habitual tardiness. 
Reprimand 1-30 days 
suspension 
Dismissal 
d) Gambling prohibited by law 
Reprimand 1-30 days 
suspension 
Dismissal 
e) Refusal to render overtime service. 
Reprimand 1-30 days 
suspension 
Dismissal 
f) Borrowing money by Reprimand 1-30 days Dismissal 
Page | 15 
 
suspension superior officers from subordinates. g) Lending money at usurious rates of 
interests 
Reprimand 1-30 days 
suspension 
Dismissal 
h) Willful failure to pay just debts 
Reprimand 1-30 days 
suspension 
Dismissal 
i)  Promoting  the  sale  of  tickets  in  behalf  of  private  enterprises  that  are  not  intended  for 
charitable  or  public  welfare  purposes  and  even  in  the  latters  case,  if  there  is  no  prior 
authority. 
Reprimand 1-30 days 
suspension 
Dismissal 
J) Failure to act promptly on letters and requests within 15 days from receipt. 
Reprimand 1-30 days 
suspension 
Dismissal 
k)  Failure  to  process  documents  and  complete  action  on  documents  and  papers  within  a 
reasonable time from preparation thereof. 
Reprimand 1-30 days 
suspension 
Dismissal 
l)  Failure  to  attend  to  anyone  who  wants  to  avail  himself  of  the  services  of  the office, or 
act promptly and expeditiously on public transactions. 
Reprimand 1-30 days 
suspension 
Dismissal 
2.  Upang  mabigyan  ng  agaran  at  makabuluhang imbestigasyon sa kasong isinampa sa BOD, ang 
lupon  ay  maaaring  lumikha  ng  isang  espesyal  na  Komite  na  ang  bilang  ay  hindi  bababa  sa  tatlo 
(3)  na  partikular  na  magsasaliksik  kaugnay  sa  kaso.  Ang  bumubuo  nito  ay  hindi  kinabibilangan 
ng  kamag-anak  o  kaibigan  ng  sinampahan  ng  kaso..  Ito  ay  kinakailangang  aksyonan  sa  loob  ng 
isang  linggo  matapos  isampa  ang  kaso  at  isulit  sa  BOD  ang  resulta ng imbestigasyon sa loob ng 
isang buwan kasama ang lahat ng ebidensya para sa kanilang desisyon. 
3.  Ang sinumang kawani o opisyal ay sasailalim sa “preventive suspension” at naka-“freeze” ang 
lahat  ng  kanyang  prebilihiyo  sa  kooperatiba  habang  naka-binbin  ang  kaso.  Siya  rin  ay  hindi 
pinahihintulutan  na pumasok sa lugar na kanyang pinagtatatrabahuhan at galawin ang mga bagay 
o ebidensya na malaki ang “bearing” sa kaso. 
Page | 16 
 
4.  Anumang  desisyon  ng  BOD  kaugnay  sa  kaso  ay kinakailangang maipaabot sa sinampahan ng 
kaso sa loob ng isang buwan matapos gawan ng desisyon. 
5. Kung ang kaso ay malaki at mangangailangan ng paglilipat sa mas mataas 
na korte, ang pagpapatibay nito ay nakaatang sa BOD. 
6.  Lahat  ng mga benepisyo ng isang kawani o opisyal ng kooperatiba habang dininig ang kaso ay 
naka-“freeze”.  Makukuha  lamang  niya  ito kung siya maabsuwelto. Kung mapapatunayan na siya 
ay “guilty” sa kasong isinampa laban sa kanya, lahat ng ito ay hindi niya makukuha. 
VI. KARAMDAMAN BILANG BASEHAN NG PAGKAKATANGGAL 
1.  Maaari  ding  tanggalin  ng  kooperatiba  ang  isang  Empleyado  matapos  mapatunayan  na 
nagtataglay  ng  karamdamang  nakakahawa  o karamdamang lalong lumala kung ipagpapatuloy pa 
ang pagtatrabaho. Siya ay makakatanggap ng “separation pay” alinsunod sa itatakda ng BOD. 
• Computation of “separation pay” Equivalent to least one (1) month salary or to one half 
(1/2) month salary for every year of service whichever is greater, a fraction of at least six 
(6) months being considered as one (1) whole year 
VII. IBA PANG BASEHAN NG PAGTATANGGAL 
Ang kooperatiba ay maaari ding magtanggal ng Empleyado alinsunod sa sumusunod: 
1. Pagbabawas ng tao dahil sa paglalagay ng makinarya. 2. Pagbabawas ng tao dahil sa 
magkakatulad na gawain (redundancy). 3. Pagbabawas upang maiwasan ang pagkalugi. 4. 
Pagsasara o pagtigil ng operasyon. 
Ang  mga  naapektuhang  Empleyado  kaugnay  sa  mga  nabanggit  na  pamantayan  sa  itaas  nito 
ay pagkakalooban ng karampatang “separation pay” na itatakda ng BOD. 
VIII. MGA URI NG PAGLIBAN (LEAVE OF ABSENCE) 
1. Ang mga kawani ay maaaring gumamit ng mga sumusunod na uri ng 
pagliban: 
Page | 17 
 
Pagbabakasyon (vacation leave) – ito ay pagliban na maaring gamitin ng kawani kaugnay sa 
pansariling dahilan. Liban sa pagkakasakit (sick leave) – ito ay pagliban na ang gamit ay sa 
pagkakasakit. Panganganak (Maternity leave) – Ito ay pagliban na para sa mga kababaihan na 
nanganak o naagasan. Pagpapa-anak (Paternity Leave) – Ito ay pagliban para sa mga ama na ang 
asawa ay nanganak. 
2. Bilang ng araw na maaring gamitin ng kawani na hindi mababawasan ang 
suweldo bawat taon: 
Pagbabakasyon - labinlimang (15) araw Liban sa pagkakasakit - labinlimang (15) araw 
Panganganak - isang buwan Pagpapa-anak - limang (5) araw 
3. Lahat ng pagliban ng kawani ay kinakailangang pagtibayin ng Tagapangasiwa subalit kung 
ang Tagapangasiwa ang liliban, ito ay pagtitibayin ng Tagapangulo ng Lupon. 4. Lahat ng 
pagliban sa pagbabakasyon o pagkakasakit na hindi nagamit ay maaring malikom at matumbasan 
ng halaga batay sa regular na sahod ng Empleyado. 
IX. PAGRERETIRO NG MANAGER/KAWANI 
1. Ang Manager/Kawani ay maaaring magretiro sa edad na mula sa 60 taong gulang 
pataas at ito ay ituturing na “normal retirement” at pagsapit ng ika-65 taong gulang ay 
ituturing na “compulsory retirement”. 2. Ang Manager/Kawani ay maaring magretiro sa 
edad na mababa sa 60 
taong gulang at ito ay ituturing na “early retirement”. 3. Ang Manager/Kawani ay 
maaaring magretiro ng mas maaga sa o 
aumang edad kung siya ay wala ng kakayahang gumawa dahilan sa karamdaman at ito ay 
ituturing na “disability retirement” na nangangailangan ng pagpapatibay ng patnugutan 
batay sa maingat na pagsusuri, pagpapatunay at rekomendasyon ng manggagamot na 
itinakda ng patnugutan. 4. Ang benepisyong tatanggapin ng sinumang Manager/Kawani 
na 
magreretiro ay nababatay sa itinakdang “retirement benefits” na pinagtibay at nasasaad sa 
pinagtibay na budget. 5. Ang kaukulang budget sa pagreretiro ng mga kawani ay 
kailangang 
paglaanan  bawat  buwan/taon  at  ilagak  sa  isang  itatakdang  Bangko  ng  BOD  at  ito  ay 
makukuha lamang o mawiwithdraw para sa kaukulang gastusin. 
Page | 18 
 
X. PAGTATASA NG MGA KAWANI 
Lahat ng kawani, maging regular, kontraktwal o nasa “probationary period” ay tatasahin 
ayon sa kanyang naging “performance” sa loob ng anim (6) na buwan o dalawang (2) beses sa 
isang taon. Ang kanyang mga nagawa ay tatasahin ayon sa sumusunod na pamantayan: 
PART I. Pagganap sa tanging gawain sa kooperatiba. 
Ang bawat kawani ay bibigyan ng nota ayon sa kanyang naging mga nagawa sa 
nilolooban ng panahon ng pagbibigay ng nota. 
10 Nakamit ng Empleyado ang 100% ng kanyang target na 
may magandang kalidad. 8 Nakamit ng Empleyado ang higit sa 50% ng kanyang 
target na may magandang kalidad. 6 Nakamit ng Empleyado ang higit sa 25% ng kanyang 
target na may magandang kalidad. 4 Nakamit ng Empleyado ang mababa sa 100% ng kanyang 
target ngunit di lalong mababa sa 51% na may potensyal na mapaganda pa ang “performance”. 2 
Nakamtan ng empleyado ang mababa sa 50% ng kanyang 
target. 
Ang mga nagawa ng kawani ay nonotahan ayon sa quantity, quality at time. Kung hindi 
maaari ang sukatan ng quantity, time at quality ang gagamitin. 
Kunin ang weighted score sa sa pamamagitan ng pag-multiply ng nota sa weighted score 
sa bawat KRA(Key Result Areas). 
Kunin ang suma total para makuha ang TPS(Total Point Score). 
Kunin ang EPS(Equivalent Point Score) sa 70% ng Total Point Score. 
PART II. Kritikal na pamantayan sa pagganap sa gawain sa kooperatiba. 
Ang sumusunod ay ang mga nota para sa mga kritikal na pamantayan na 
nakaka-apekto sa pagganap ng kawani sa kanyang gawain: 
10 - palagiang pagpapakita ng kawani ng mga katangiang kinakailangan, ang kalamangan ay mas 
higit kaysa sa kanyang mga kasamahan sa kanyang level o ang gawain ay magkatulad. 8 - 
palagiang pagpapakita ng kawani ng katangiang kinakailangan na konti lang ang kahigitan kaysa 
sa kanyang mga kasamahan sa kanyang level o ang gawain ay magkatulad. 6 - pagpapakita ng 
kawani ng katangiang tama lamang katulad 
lamang ng iba sa kanyang level o ang gawain ay magkatulad. 
Page | 19 
 
4 - ang kawani ay hindi nagpakita ng katangaing hinihingi sa kanyang pagganap sa gawain 
subalit may potensyal na ito ay mabago. 5 - ang kawani ay hindi nagpakita ng katangaing 
hinihingi sa kanyang pagganap sa gawain subalit mangangailangan ng panahon at pagsisikap na 
ito ay mabago. 
Kunin ang average rating at 30% upang makuha ang EPS (Equivalent Point Score) 
PART III. PANGKALAHATANG NOTA, PUNA AT REKOMENDASYON. 
Pagsamahin ang Part I at Part II upang makuha ang Total Equivalent Point Score (TEPS). 
Kunin ang TEPS katumbas na uring nota na nasa ibaba nito: 
Nota Katumbas n Uring Nota 9.503 - 10.000 8.752 - 9.502 7.501 - 8.751 5.000 - 7.500 
2.401 - 4.999 2.000 - 2.400 
Outstanding Highly Commendable Commendable Acceptable Marginal Poor 
Isulat  ang  puna  sa  kaugnay  sa  kalakasan  at  kahinaan  ng  kawani  at  Ilagay  ang 
rekomendasyon  tulad  ng  promosyon,  job  rotation,  etc  gayundin  ang  mga  pagsasanay  na 
kailangan at istratehiya upang mapaunlad ang kanyang kakayahan. 
Ito  ay  magkakaharap  na  pag-uusapan  ng  kawani  at  kanyang  supervisor/manager  at 
isusulit  sa  BOD  para  sa  kanilang  kompirmasyon.  Ito rin ang magiging batayang ng BOD para sa 
lahat ng pangkawanihang aksyon. 
Sa pagtatasa ng mga kawani sa kanyang pagganap sa kanyang tungkulin, ang sumusunod ay 
ang mga pamantayan: 
1. Costumer Service – pagganap sa gawain ng maayos at magalang na 
serbisyo sa mga kasapi at kliyente. 2. Initiative and dependability – pagganap sa tungkulin ng 
maayos na 
hindi na kailangang utusan pa. 3. Interpersonal Relations – pagganap sa tungkulin na may 
maayos na 
pakikitungo sa kapwa kawani at mga nakatataas sa kanya. 4. Honesty and Integrity – 
pagpapakita ng kaya-ayang reputasyon at pag- 
uugali gayundin ang pagiging propesyonal sa lahat ng pagkakataon. 
Page | 20 
 
5. Cost Sensitivity – maayos at masinop na paggamit ng mga 
pinakikinabangang pag-aari o ari-arian ng kooperatiba. 6. Attendance and Punctuality – ito 
ay ang pagpasok ng regular at tama sa oras at paggamit ng oras sa kapaki-pakinabang na gawain. 
Ito ay nahahati sa dalawang aspeto: 
ATTENDANCE 10 - hindi higit sa 4 na liban 8 - 5 hanggang 8 liban 6 - 9 hanggang 12 
liban 4 - 13 hanggang 16 na liban 2 - liban ng higit sa 16 
PUNCTUALITY 10 - hindi higit sa 10 huli o undertime 8 - 11 – 20x huli o undertime 6 - 
21 - 30x huli o undertime 4 - 31 – 40 x na huli o undertime 2 - higit sa 40x huli o undertime 
7. Innovativeness and Creativity – may mga mungkahing pagbabago, praktikal at maaaring 
gamiting ideya at pamamaraan na makapagpaganda ng operasyon. 8. Self- Learning and 
Development – pagkukusang paunlarin ang sariling kakayahan at kaalaman sa pagdalo sa mga 
pagsasanay at iba pang pagsasaliksik ng kaalaman tungo sa pansariling pagpapataas ng antas ng 
kaalaman. 9. Planning and Organization – kakayahang pag-aralan ang ang pangangailangan at 
tingnan ang posibleng mangyari, magtakda ng mainam na mga priyoridad, layunin at maayos na 
pagpaplano ng kanyang mga gagawin. 10. Judgement and Decision- Making – malawak na 
pag-unawa sa mga impormasyon at paggawa ng nararapat na desisyon kahit sa mga 
komplikadong sitwasyon. 11. Stability and Composure – kalmado at madaling itugma ang sarili 
sa 
pagbabago. 
Iba pang pamantayan para sa mga Pinuno 12. Leadership – epektibong nakatutulong sa mga 
tauhan sa tamang layunin, nakakahikayat at tumutulong na maabot ang mga layuning ito, isang 
epektibong lider na pinagaganap ang grupo ng maayos, pantay- pantay ang trato sa mga kawani 
at palagiang mataas ang morale ng mga ito. 13. Coaching and Staff Development – tinutulungan 
ang mga kawaning makamit ang tamang kaalaman ng kanyang mga kawani at pagyamanin 
Page | 21 
 
ang kanilang kakayahan; at tumutulong makamtan ng mga kawani ang propesyonal na kaalaman. 
XI. PAGTATAKDA NG BACK-UP 
Upang  maging  tuloy-tuloy  ang  transaksyon  kahit  wala  ang  pangunahing  mga  opisyal  at 
tagapamahala  ng  kooperatiba,  ang  pagtatakda  ng  back-up  ay  lubhang  kinakailangan.  Ang 
sumusunod ay ang mga Class A at Class B Signatories: 
CLASS A SIGNATORIES: 
1. Chairman 2. Manager 3. Treasurer 
CLASS B SIGNATORIES 
1. Vice Chairman o isang Direktor. 2. Accountant 3. Cashier 
Sa pagkakataong wala ang alinman sa Class A signatories, isang bonded na kawani ang 
kailangan lalo’t kung ito ay isang transaksyon pinansyal. 
Ang  pagtatakda  ng  back-up  ay  mangangailangan  ng  isang  resolusyon  na  tuwirang  tinutukoy 
kung sino ang kanilang itatakdang Class A at Class B signatories. 
Gayundin, sa mga accounts ng kooperatiba sa mga bangko, kailangan din ang pagtatakda ng 
mga taong lalagda sa kanilang mga transaksyon. 
XII. SUWELDO, ALLOWANCE, HONORARIUM AT IBA PANG 
KOMPENSASYON 
Anumang  kompensasyon  na  maaaring  tanggapin  ng  kawani,  Tagapamahala,  at  mga  halal  at 
di-halal  na  opisyales  ng  kooperatiba  ay  ibabatay  sa  pinagtibay  na  Plantilla  at  kasama  sa 
pinagtibay na budget. 
XIII. IBA PANG PATAKARAN 
1. Ang Pangkalahatang Re-organisasyon ng mga kawani ay kinakailangan ng 
pagpapatibay ng BOD. 
Page | 22 
 
XIV. PAGPAPATUPAD 
Ang patakarang ito ay agad ipapatupad matapos pagtibayin ng Lupon ng Mga Patnugot sa 
kanilang karaniwang pulong. 
XV. PAGPAPATIBAY 
Pinagtibay  ngayong  ika-23  ng  Pebrero,  taong  2013  sa  ginanap  na  karaniwang 
pagpupulong  ng  Lupon  ng  Patnugot  sa QUEZON PUBLIC SCHOOL TEACHERS AND 
EMPLOYEES CREDIT COOPERATIVE, Lucena City. 
Pinatunayang wasto: 
(SGD.)ORLANDO V. ORNEDO 
Kalihim 
PINAGTIBAY: 
(SGD.)REYNALDO S. LUNA Chairman 
(SGD.)RONALDO V. GARCIA Vice-Chairman 
(SGD.)IRENE D. PANDY Director 
(SGD.)EDNA L. CABRERA Director 
(SGD.)CONSORCIA E. OLIVERA Director 
BOD RESOLUTION NO. 11-2013 
Page | 23 
 
IV. MEMBERSHIP 
That  membership  of  this  cooperative  shall  be  open  to  all  persons  who are of legal 
age,  with  capacity  to  contract  or  heads  of  the  families  and  members  of  Region  IV-A 
Quezon  Province  Public  School  Teachers  and  Employees  Association  Inc.  (QPSTA) 
residing  and/  or  working  in  the  area  of operation as provided in Article IV of the Articles 
of Cooperation of the QPSTECC. 
The prospective members should: 
1. Pledge to undertake the responsibilities of members; 2. Complete the prescribed 
pre-membership cooperative education program; 
and 3. Use or anticipate to use the services of cooperative more particularly the 
savings and loaning services and other allied services relative thereto. 
Application for Membership 
a). The application for membership shall be in writing on a form provides for the 
purpose and shall be presented to the Board of Directors for action. 
The application shall be accompanied by a membership fee of fifty (P50.00) pesos 
which amount shall be returned to the applicant in case of rejection. 
b.)  The  applicant  shall  subscribed  for  at  least  ONE  HUNDRED  FIFTY  (150) 
shares  with  a  total  value  of  FIFTEEN  THOUSAND  PESOS  (P15,000.00)  of  which  at 
least  THREE  THOUSAND  SEVEN  HUNDRED  FIFTY  PESOS  (P3,750.00) 
corresponding  to  THIRTY  SEVEN  POINT  FIVE  (37.5)  shares  shall  be  paid  upon 
submission  of  the  application  for  membership.  The  membership  and  subscription 
agreement shall provide terms of payment on the unpaid subscription. 
However,  no  member  shall  own  or  hold  more  than  ten  percent (10%) of the total 
subscribed  share  capital  of  the  cooperative.  The  Board  of  Directors  shall  issue 
membership  certificate  and  subscription  agreement  with  such  terms  and  conditions  as 
may be deemed equitable. 
c).  Appeal-  an  applicant  rejected  by  the  Board  of  Directors,  may  appeal  his  case 
to  the  next  general  assembly  by  giving  notice  to  Secretary  of  the  Cooperative  thirty (30) 
days before the said General Assembly, whose decision on the matter shall be final. 
Page | 24 
 
Duties of a Member 
Every member shall have the following duties: 
a. Pay the installment on capital stock subscription as it falls due and to 
participate on a capital build-up of the cooperative; b. Patronize regularly its business; 
c. Participate in its parliamentary affairs; d. Attend the membership meeting, regular or 
special; e. Obey the rules and regulations provided by R.A. 9520, these by-laws, the 
decisions of the general assembly and the Board of Directors, and policies and decisions 
that may be promulgated by the Cooperative Development Authority (CDA); and f. 
Promote the aims and purposes of the cooperative, the success of its business, the welfare 
of its members and the cooperative movement as a whole. 
Rights of a Member 
Every member who is entitled to vote has the following rights; 
a). Participate in the deliberation during membership meeting; b). Vote on all matters 
brought before such meetings; c). Seek any elective position, subject to the provisions of 
Section 12, Article 
III of its by-laws; d). Avail himself of the services of the cooperative without any 
discrimination whatever upon compliance with the conditions and requirements thereof; 
and e). Inspect and examine the books of accounts, the minutes books, the share register 
and other records of the cooperative during office hours and exercise other rights and 
privileges of membership. 
A member is entitled to vote when he: 
a. Has paid the required membership fee of fifty pesos (P50.00) and the value of at least 
THREE THOUSAND SEVEN HUNDRED FIFTY PESOS (P3,750.00) corresponding to 
THIRTY SEVEN POINT FIVE (37.5) shares as provided in Section 2 of the QPSTECC 
By-Laws; b. Is not delinquent in the payment of this capital contribution and 
accounts; c. Has not violated any provision of the by-laws, rules and regulations, 
circulars, memoranda and other issuances of the CDA, membership and subscription 
agreement and other instruments required of him to 
Page | 25 
 
execute as provided in the by-laws or as prescribed by the Board of Directors; d. Has 
attended and completed the prescribed cooperative seminars; e. Patronizes regularly the 
business of the cooperative and participates 
in its parliamentary affairs; and f). Complies with all obligations, duties and 
undertakings of membership. 
Liability of Members 
The Liability of a member shall be limited. No member shall be liable for any 
indebtedness of the cooperative beyond his subscribed shares. 
Termination of Membership 
Membership in the cooperative may be terminated either by voluntary, involuntary 
or automatic termination. 
Voluntary  Termination  -  Any  member  desiring  to  terminate  his  membership  by 
giving  a  sixty  (60)  day  notice  to  the  Board  of  Directors.  However,  no  member  shall  be 
allowed  to  withdraw  or  terminate  his  membership  during  any period in which he has any 
pending obligation with the cooperative. 
Involuntary Termination - A member may be terminated by a vote of the majority 
of all members of the Board of Directors for any of the following causes: 
a). When a member has not patronized the service of the cooperative for an 
unreasonable period of time as may be fixed by the Board of Directors; 
b).When a member has continuously failed to comply with his obligations; 
c). When a member has acted in violation of the By-Laws and the rules of the 
cooperative; and 
d). For any act or omission injurious or prejudicial to the interest or the welfare of 
the cooperative. 
A  member  whose  membership  the  Board  of  Directors  may  visit  to terminate shall 
be  enforced  of  such  intended  action  in  writing  and  shall  be  given  an  opportunity  to  be 
heard  before  the  said  board  makes  it  decisions.  The  decision  of  the  board  shall  be  in 
writing  and  shall  be  communicated  in  person  or  by  registered  mail  to  the  member  and 
shall  be  appealable,  within  thirty  (30)  days  after  then  decision  is  promulgated,  to  the 
general  assembly  whose  decision therein, whether in a general or special session, shall be 
final. Pending a decision by the general assembly, the membership remains in force. 
Page | 26 
 
Automatic Termination - The death, insanity, permanent incapacity or judicial declaration 
by  a  competent  court  or  the  insolvency  of  a  member  shall  be  considered  an  automatic 
termination of his/her membership in the Cooperative. 
Refund of Share Capital Contribution 
A  member  whose  membership  is  terminated shall be entitled to a refund of his/her 
share capital contribution and all other interests in the Cooperative. However, such refund 
shall  not  be  made  if  upon  payment  the  value  of  the  assets  of  the  cooperative  would  be 
less than the aggregate amount of its debts and liabilities exclusive of his/her share capital 
contribution.  In  which  case,  the  terminated  member  shall  continue  to  be  entitled  to  the 
interest  of  his/her share capital contributions, patronage refund and the use of the services 
of  the  co-  operative  until  such  time  that all his/her interests in the co-operative shall have 
been  duly  paid.  Upon  the  acceptance  of  his/her  withdrawal  or  approval  of  his/her 
termination,  however,  he/she  losses  his/her  right  to  attend,  participate  and  vote  in  any 
meeting of the Board of Directors or the general assembly. 
Page | 27 
 
V. CREDIT/LOANS 
SOURCES OF FUNDS 
Six percent (6%) of the loan proceeds. 
QUALIFICATION OF MEMBER - BORROWER 
Patronizes regularly the business of the cooperative; 
TYPES OF LOAN 
The cooperative shall extend providential loans to the members. 
A.  REGULAR  LOAN  -  any  loan  which  will  give  the  member  and/or  his/her 
dependents  relief  from  financial  difficulties  or  savings  through  the  use  of  credit, 
such as but not limited to: 
1. Payment of hospital, medical and dental bills 
2. Payment of funeral services 
Share Capital contribution 
At least 50% of annual interest on capital & patronage refund 
Has  paid the required membership fee of Fifty pesos (P50.00) and the value of 37.5 
shares amounting to Three Thousand Seven Hundred Fifty Pesos (P3,750.00); 
Not delinquent in the payment of his capital contribution and loan amortizations; 
Has  not  violated  any  provisions  of  the  by-laws  of  the  cooperative,  rules  and 
regulations  issued  by  CDA,  membership  and  subscription  agreements  and  other 
instruments  required  of  him  to  execute  as  provided  in  the  by-laws  or as prescribed 
by the Board of Directors; 
Has attended and completed the prescribed seminars; 
Page | 28 
 
3. Payment of tuition fees, matriculation and/or other school needs 
4. Payment of taxes and other obligations of the borrower 
5. Full payment of debts to usurers 
6. Construction or repairs of residential houses occupied or owned 
by the member 
7. Purchase of household appliances 
8. Purchase of basic commodities 
B.  EMERGENCY  LOAN/BONUS  LOAN  -  any  providential  loan  that  needs 
immediate attention and release for an unexpected urgent financial necessity. 
1. Payment of medical, hospital and dental expenses 2. Payment of expenses 
resulting from accident or calamities. 
AMOUNT OF LOAN, INTEREST SERVICE FEES AND FINES 
Regular  members  as  well  as  new  members  who have fully paid the minimum 
number  of  subscribed  shares in the cooperative are qualified to borrow or apply for 
regular loan under the following terms and schedule: 
PAYABLE WITHIN ONE (1) YEAR WITH 6% SERVICE FEE DEDUCTED UPFRONT. NET PAY 
REQUIREMENT (WITH 2 CO- MAKERS ) 
LOAN AMOUNT (PRINCIPAL) 
MONTHLY 
FILING 
INTEREST 
PENALTY/ AMORTIZATION 
FEE 
(per annum) 
FINES 
5,800.00 25,000.00 2,239.58 
20.00 
7.5% 
6,200.00 30,000.00 2.687.50 
20.00 
7.5% 
6,700.00 35,000.00 3,135.42 
20.00 
7.5% 
7,100.00 40,000.00 3,583.33 
20.00 
7.5% 
1% for each 7,600.00 45,000.00 4,031.25 
20.00 
7.5% 
delayed monthly 8,000.00 50,000.00 4,479.17 
20.00 
7.5% 
amortization 
8,900.00 60,000.00 5,375.00 
20.00 
7.5% 
10,300.00 75,000.00 6,718.75 
20.00 
7.5% 
12,500.00 100,000.00 8,958.33 
20.00 
7.5% 
Page | 29 
 
PAYABLE WITHIN TWO (2) YEARS WITH 8% SERVICE FEE DEDUCTED UPFRONT 
NET PAY REQUIREMENT (WITH 4 CO- MAKERS ) 
LOAN AMOUNT (PRINCIPAL) 
MONTHLY AMORTIZATION 
FILING FEE 
INTEREST (per annum) 
PENALTY/ FINES 
4,700.00 25,000.00 1,197.92 
20.00 
7.5% 
5,000.00 30,000.00 1,437.50 
20.00 
7.5% 
5,200.00 35,000.00 1,677.08 
20.00 
7.5% 
5,500.00 40,000.00 1,916.67 
20.00 
7.5% 
5,700.00 45,000.00 2,156.25 
20.00 
7.5% 
1% for each 
5,900.00 50,000.00 2,395.83 
20.00 
7.5% 
delayed monthly 
6,400.00 60,000.00 2,875.00 
20.00 
7.5% 
amortization 
7,100.00 75,000.00 3,593.75 
20.00 
7.5% 
8,300.00 100,000.00 4,791.67 
20.00 
7.5% 
PAYABLE WITHIN THREE (3) YEARS WITH 8% SERVICE FEE DEDUCTED UPFRONT 
NET PAY REQUIREMENT (WITH 4 CO- MAKERS ) 
LOAN AMOUNT (PRINCIPAL) 
MONTHLY AMORTIZATION 
FILING FEE 
INTEREST (per annum) 
PENALTY/ FINES 
5,300.00 50,000.00 1,701.39 
20.00 
7.5% 
5,600.00 60,000.00 2,041.67 
20.00 
7.5% 
5,900.00 70,000.00 2,381.94 
20.00 
7.5% 
6,300.00 80,000.00 2,722.22 
20.00 
7.5% 
6,600.00 90,000.00 3,062.50 
20.00 
7.5% 
1% for each 
7,000.00 100,000.00 3,402.78 
20.00 
7.5% 
delayed monthly 
7,300.00 110,000.00 3,743.06 
20.00 
7.5% 
amortization 
7,600.00 120,000.00 4,083.33 
20.00 
7.5% 
8,000.00 130,000.00 4,423.61 
20.00 
7.5% 
8,300.00 140,000.00 4,763.89 
20.00 
7.5% 
8,700.00 150,000.00 5,104.17 
20.00 
7.5% 
Page | 30 
 
LIMITATIONS 
The  paying  capacity  of  the  borrowing  member  shall  be  taken  into 
consideration  before  he  may  be  granted  the  above  loans.  The  net  pay  requirement 
should  be  followed  strictly  for  those  who  opted  to  pay  through  Automatic  Payroll 
Deduction System (APDS) and must surrender their latest original payslip. 
To  those  members  who  will  apply  for  a  loan  and  voluntarily  surrender  their 
Salary ATM, they may avail the maximum loan of P50,000.00 payable in one year. 
MANNER OF PAYMENT 
1. Through Automatic Salary Deduction System (APDS); 2. Loan amortization 
shall be paid by the borrowing member directly to the cooperative office within 
two (2) days after the pay day whenever the pay was credited to the ATM. Any 
change in the amount credited to the salary ATM can be claimed by the member. 3. 
Remittance from: 
a.) the independent secondary schools with the corresponding 
abstract of payment; and b.) the office of the district supervisors with the 
corresponding 
abstract of payment. 
RENEWAL OF LOAN 
A member may renew loan upon payment of at least fifty percent (50%) of 
the loan. 
FILING AND APPROVAL OF LOAN 
All loan application must be fully filled up and to be filed with the loan officer who 
shall  determine  if  all  the  information  in  the  application  for  loan  has  been 
completely filled up. 
Page | 31 
 
The  Manager  approves  the  loan  and  signs  the  check  after verifying the correctness 
of  the  entries  in  the voucher and ensures that the remaining balance reflected in the 
member’s individual ledger has been deducted in the loan. 
RELEASE OF LOAN 
Loan proceeds shall be released to member borrower on first come first serve basis. 
PROHIBITION 
The  board  of  directors,  management  staff  and  committee  members  are 
prohibited  from  becoming  co-makers.  A  member  can  become  a  co-  maker  up  to 
two times only. However, in case the first loan where he/she is a co maker has been 
fully paid, he/she may again be a co- maker for another loan. 
All loan releases must be through vouchers and paid in check. 
The loan officer shall compute the loanable amount. 
The loan officer shall then process, evaluate the loan application after screening the 
completeness of the application form and the corresponding requirements. 
Page | 32 
 
VI. BUDGETARY and FINANCIAL CONTROL 
1. RESPONSIBILITY 
1.1  The  Budget  and  Finance  Committee  of  this  Cooperative  shall  have 
responsibility  for  bringing  the  appropriate  budget  and  financial  recommendations 
to the board in accordance with this policy. 
2. OPERATING BUDGET POLICY 
2.1 The cooperative shall utilize a budget as the structure for planning 
and, to a lesser extent, control. 
2.2 The board is committed fully to formulate policy, make decisions, and do the 
planning necessary for the success of the budget. 
2.3  The  budget represents a proposed plan of operations and not a straight jacket. It 
facilitates  the  means  of  selecting  among  alternatives  when  resources  are  limited, 
but  should  not  be  so  flexible  as  to  preclude  the  implementation  of  new  ideas 
arrived at subsequent to budget approval. 
2.4  All  individuals  or  groups  responsible  for  performance  under  the  budget  are  to 
be  involved  in  its  preparation.  The  budget  should  reflect  goals  and  objectives  and 
determine  the  programs  and  workloads  for  the  coming  period.  Emphasis  in  the 
budget preparation should be on the work program and plan, not the pesos to which 
such plans must be reduced. 
2.5  The  budget  is  a  plan,  and  as  such,  can  be  of  great  benefit  in  determining 
whether  actual  programs  were  successful  and  how  to  improve  future  plans.  The 
budget is to be used for control purposes only in a secondary manner. 
2.6  The  budget  must  be  presented  to  the  annual  general  assembly  for  approval.  If 
the  general  assembly  disapproves  the  budget,  then  the previous year’s budget shall 
be used. 
2.7 The approved budget is authority for the manager to place the plan 
into operation or spend within the structure of the budget. 
Page | 33 
 
3. OPERATING BUDGET PROCEDURE 
3.1 Planning Meeting. 
Each  year in October there will be a special board meeting to consider problems 
requiring  solution  and  to  plan  goals,  objectives,  and  direction  the  cooperative 
should  move  during  the  year.  The  meeting  is  not  to  be  the  regular  board  meeting 
and  current  operating  problems  should  not be discussed except as they relate to the 
future. 
3.2 Budget Request. 
In  mid-September  the  manager  shall,  in  writing,  request  proposed  workloads 
and  programs  from  responsible  committee  chairmen,  officers,  management  and 
staff  members.  The  manager  or  his  staff  will  provide  resource  data  and  will  assist 
in the pricing of programs when it is desired. Responses are also to be written. 
3.3 Preliminary Decisions. 
At  the  November  and  December  board  meetings,  the  wage  and  salary 
recommendations  will  be  considered.  Key  issues  and  decisions  relating  to  other 
activities will also be considered. 
3.4 Budget Document. 
The  manager  shall  bring  together  all  plans  into  a  budget  document. The budget 
document  shall  be  reviewed  by  the  Budget  and  Financial  Committee  with  the 
proposed  workloads  and  projects  being  studied  to  make  certain  that  an  acceptable 
and  internally  consistent  plan  is  produced.  When  there  are  inconsistencies,  the 
Budget  and  Finance  Committee  shall  discuss  the  matter  with  the  recommending 
individual or group to attempt to clarify the matter. 
The  Budget  and  Finance  Committee  shall  recommend  the  final  budget  to  the 
Board  for  action  at  the  November  meeting.  Changes  from  the  original  requests 
shall  be  disclosed  and explained to the board, with the original recommender being 
given the privilege of supporting the request to the board. 
Page | 34 
 
3.5 Budget Evaluation. 
Progress  toward  accomplishment  of  the  plan  shall  be  presented  to  the  board 
quarterly,  and  oftener  if  in  the  opinion  of  the  manager  or  treasurer,  any  aspect  of 
the  budget  is  out  of  control. Only significant rather than minor wants and items are 
important. 
3.6 Approval For Change. 
Board  action  is  necessary  to  change  salaries.  The  manager  is  authorized  to 
overspend  individual  budget  items  by  small  amount,  but  not  the  budget  total. 
Interest  expense  over  budget  requires  no  authorization  other  than  for  the 
borrowing. The budget must change to fit circumstances. 
3.7 Responsibility for Budget Recommendations. 
a)  Share  goals  -  Board  at  planning  meeting  b)  Loan  goals  -  Board  at  planning 
meeting  c)  Dividend  and  reserve  policy  -  Board  at  planning  meeting  d)  Revenue 
estimates -Treasurer with the assistance of the 
Manager (based on balance sheet 
projections) e) Salaries and related 
costs - Personnel Committee and Manager f) Loan department - Loans & Credits 
Officer g) Collection - Cashier h) Audit examination and protection - Audit 
Committee i) Marketing and Member Education - Education and Training 
Committee j) Depreciation and 
Amortization - Accountant and Manager k) Dues to Federations, Chapters, etc.- 
Chairman and Manager 
3.8 Cautions. 
a) Budgets are only tools for use by individuals, they do not 
manage. b) All efforts are needed to follow a plan and to accomplish goals. 
The accomplishment of budget goals is not automatic. c) Judgment is needed to 
interpret budgets as they are only 
estimates. 
4. CASH BUDGETING 
 It  is  predicting  cash  inflows  and  allocating  cash  outflows  of  the  cooperative 
for  a  specific  time  period.  For  this  reason,  cash  budgeting  of the cooperative relies 
heavily on accurate cash flow forecasts. The goal is to 
Page | 35 
 
strike a cash reserve balance that is neither too much nor too little but still allows 
the business to pay its daily operating expenses. 
The  management  should  provide  a  detailed  plan  of  future  cash  flows  which 
is  composed  of  cash  receipts,  cash  disbursements,  net  change  in  cash  for  the 
period,  and  new  financing  needed  that  will  sustain  the  lending  operation  of  the 
cooperative and to be approved by the Board. 
5. CAPITAL BUDGET 
A  capital  budget  shall  be  considered  each  year  with  the  operating  budget. 
Capital budget requests can originate with the manager, an officer or a committee. 
6. TRAVEL 
Travel  expenses  incurred  by  officers  and  employees  of  this  Cooperative  in  the 
performance  of  their  official  duties  will  be  reimbursed  in  accordance  with  the 
following policy: 
a) General 
The  board  of  directors  has  full  and  final  authority  to  determine  when  travel 
may  be  conducted  at  the  expense  of  the  cooperative,  and  to  approve  (or  disallow) 
claims for reimbursement. 
The guiding principle is that travelers will be reimbursed for actual expenses 
while in authorized travel status. 
In  general,  authorizations  for  travel  (and  reimbursement  of expense) may be 
granted at the discretion of the board in the following cases: 
a1)  Travel  necessary  for  the  conduct  of  ordinary  business  affairs  of  the 
cooperative,  including  travel  required  for  organizing  and  conducting  business  in 
remote areas; 
a2) Travel required to represent the cooperative or present testimony 
at official hearings upon request by government agencies; 
a3) Travel incidental to participation in meetings of federations, 
unions or associations in which the Cooperative is a member; and 
Page | 36 
 
a4)  Travel  required  to  attend  or  conduct  training  schools,  seminars,  symposiums, 
and  meetings  of  a  professional  or  semi-professional  nature  intended  to  improve 
technical  knowledge  and  competence  in  handling  cooperative  and  savings  and 
loans affairs. 
b)  The  Cooperative  will  not  pay  travel  or  other  expenses  incurred  outside  of 
business  or the travel expenses for the spouse of any director, officer, management, 
member  of  the  staff,  or  other  person  associated  with  the  Cooperative  unless  voted 
specifically by the board after a showing of benefit to members or the Cooperative. 
c) Authorization for Travel. 
Authorization  for  travel  will  ordinarily  be  requested  in  advance  and  granted 
by board action, through budget approval, with the following exceptions: 
c1) Travel in which reimbursable expenses will not exceed the actual as 
reflected in the tickets/receipts. 
c2)  The  manager  is  deemed  to  have  a  prior  authorization  for  travel  within  the 
province  when  such  travel  is  necessary  for  ordinary  business  affairs,  as defined by 
items a1) and a2); 
c3) Travel expenses of the manager shall be approved by the chairman 
of the board or treasurer before incurring such expenses; and 
c4)  A  detailed  expense  account  incurred  under this authorization shall be reviewed 
by  the  treasurer  and  included  as  part  of  the  expense  report  to  be  approved  by  the 
directors at their next meeting. 
d) Records and Reports. 
The record of travel expenses claimed and reimbursed will be documented in 
the files of the Cooperative with vouchers, receipts, and authorizations. 
Travel  expenses  will  be  treated  as  operating  expenses  to  be  reported  to  and 
reviewed by the directors as part of the regular financial reports of the treasurer and 
manager. 
d1) For purposes of this review, travel expenses will be clearly 
designated as items separate from other operating expenses. 
Page | 37 
 
d2)  Supplementing  the  financial  report,  persons  conducting  travel  at  the 
Cooperative’s  expense  will  be  prepared  to  report  on  the  purpose  and  the  results  of 
their  travels.  At  the  discretion  of  the  Chairman  or  manager,  these  reports  may  be 
put on the agenda. 
8. CHARGED-OFF LOAN RECORD 
Loans  charged  to  the  regular  reserve  as  uncollectible  will  be  documented  (loan 
folder,  correspondence, etc.) controlled, and a formal ledger indicating the status of 
each  shall  be  maintained.  Statements  shall  be  maintained,  Statements  shall  be sent 
at  least  annually  unless  the  address  is  unknown,  the  account  is  settled  by 
agreement,  or  is  in  the  hands  of  a  collecting  agency  or  is  otherwise  legally 
uncollectible. 
9. GIFTS TO CHARITIES, FUNDS, or FOUNDATIONS 
It  shall  be  the  policy  of  this  Cooperative  not  to  contribute  to  charities,  funds or 
foundations  which  solicit  from  individuals,  because  individual  members  of  the 
cooperative  have  already  made  a  personal  decision  on  such  giving.  As  the 
Cooperative  is  a non-profit entity composed of individual members, giving on their 
behalf would be inappropriate. 
Contributions or gifts not covered by the policy shall require special action of 
the board of directors. 
10. POLITICAL CONTRIBUTIONS 
It shall be the policy of this Cooperative not to contribute to political 
campaigns. 
Page | 38 
 
VII. INTERNAL CONTROL 
PURPOSE: To safeguard the cooperative assets and promote operational 
efficiency. 
CASH RECEIPTS 
All payments must be covered by the official Receipts (O.R.) of the 
cooperative. 
The Official Receipt must be duly acknowledged by the Cashier. 
All payments must be recorded in the Cash Receipts Journal by the 
Bookkeeper on the day of the transaction. 
The bookkeeper shall stamp the word “posted” for all official 
receipts duly recorded including the date of posting. 
Official Receipts must not contain any alteration or erasure. Any 
correction made must be initialed by the Cashier and made to all 
copies of the receipts. 
The Cashier is given the discretion to determine if there is a need to 
cancel the altered receipts and to issue a new official receipts. 
The word cancelled must be stamped in the face of the Official 
Receipt and the date of canceling with the initial of the Cashier. 
All checks including postdated checks issued by the members in 
payments to cooperative, a provisionary receipt shall be issued until 
Page | 39 
 
In accepting payment by check from the member, it is required that 
the member is the maker/ drawee of the check and the date of the 
check shall be on the date of transaction. 
CASH DISBURSEMENT 
such time that the check become good and cleared by the 
depository bank. A ledger for each member shall be maintained. 
Payments by second endorsed checks are not allowed. 
All disbursement of fund shall be covered by cash vouchers. 
The voucher must contain the approval by the manager, released 
by the Disbursing Officer and posted by the Bookkeeper. 
All disbursement must be recorded in Cash Disbursement Journal by 
the bookkeeper on the day of the transaction. 
The voucher must not contain any alteration or erasure. Any 
correction must be made to all copies of the voucher. 
All payments must be paid in check except minimal disbursements 
to be paid out of Petty Cash Fund. 
Vouchers shall be serially numbered. 
The Bookkeeper shall review and check the correctness and 
completion of all the required supporting documents. 
Page | 40 
 
Vouchers representing the released of loans, the approved 
application loan shall be attached to the voucher. 
Voucher representing the payments of obligations must be 
supported by approved Purchase Order. 
Voucher representing the payments of traveling expenses, the duly 
approved itinerary of travel and travel order must be attached to 
the voucher. 
Payment must be reviewed by the Payee named in the vouchers. 
Payment through authorized representative may be allowed 
provided that there is a prior arrangement with the cooperative. 
Vouchers representing claim for payment of traveling expenses shall 
be supported by a duly approved Itinerary of Travel and Travel 
Order. 
Upon released of check, the Disbursing Officer or his duly 
authorized representative shall stamped “PAID” to all copies of 
voucher and its supporting documents and indicate therein the date 
of payment. 
Vouchers shall be signed by the payee or his duly authorized 
representative to acknowledge receipts of payments. 
Page | 41 
 
For every transaction that will entail disbursement of funds, the 
Disbursing Officer shall certify as to the availability of funds. 
CASH ADVANCE 
If applicable, the Disbursing Officer or his duly authorized 
representative shall demand an Official Receipt (O.R.) or other 
similar documents from the payee. 
All disbursement of funds must have a prior authority from the 
Board of Directors except when duly authorized under the 
approved annual budget of the cooperative, hence, only for 
payments shall secure approval from the Board of Directors. 
All duly authorized staff and officers can make cash advances in 
connection with the performance of their official functions as such. 
In no case shall Cash Advances be allowed for personal purposes. 
The officers and staff shall accomplish a Request for Cash Advance 
Form and shall indicate therein the purpose and amount of Cash 
Advance. 
The request shall be approved by the Chairman of the Board of 
Directors and shall be released by the Cashier. 
The Cash Advance shall be liquidated within five (5) days from the 
release of cash advance. The official receipt for every expenses 
incurred must be in the name and/or care of the cooperative, the 
Page | 42 
 
same must be submitted to support the liquidation of cash 
advance. 
The Bookkeeper shall review and check the validity of the 
supporting documents. When authorized by the Board of 
Directors, the Bookkeeper may verify the authenticity of the 
documents submitted for liquidation from its source. 
Employees and officers with unliquidated cash advances shall not 
be allowed for another cash advances. 
The Cashier shall submit to the Board of Directors a monthly 
report of unliquidated cash advances including cases of delayed 
liquidations. 
Page | 43 
 
VIII. FUNDS AND ASSET MANAGEMENT 
1. STATEMENT OF PURPOSE 
To  safeguard  the  assets,  verify  the  correctness  of  accounting  data,  promote 
operational  efficiency  and  control,  and  prevent  fraud  and  losses  on  the  part  of  the 
cooperative. 
2. STATEMENT OF PROCEDURES/GUIDELINES 
2.1 Safeguard and Control of Assets 
a)  Dual  control  requires  the  joint  effort,  reciprocal  witnessing,  proofing,  or 
authentication  by  two  or  more designated staff/officers, whether together or singly, 
one after the other, to successfully and properly complete the operation; 
b)  Dual  control  of  the  vault,  safes,  chests,  receptacles  shall  be  established  by  the 
use  of  two  locks  or  combination  with  one  or  more  staff/officers  assigned  to  each 
half of the control; 
c)  Safe  combination  numbers  should  be  written  or  typed  on  paper  placed  in  one 
envelop  sealed  with  wax  with  signatures  of  the  officer-holders  and  their  witness 
and  seal  the  flop  to  expose  any  tampering  thereof.  The  envelop  shall  be  deposited 
to the manager; 
d) The same procedures apply to the duplicate keys to the inner 
door of the vault, safes, chest and drawers; and 
e)  Cashiers  and  other  officer  assigned  to  the  dual  control should avoid observation 
by one another while operating safe or vault combination. 
2.2 Segregation of Duties and Responsibilities 
The physical handling of a transaction shall be separated from its 
supervision as follows: 
Page | 44 
 
a)  A  person  handling  cash  shall  not  be  permitted  to  have  access  to  the  four  books 
of  accounts  (  cash  receipt  book,  cash  disbursement  book,  general  journal  and 
general ledger) and the subsidiary ledgers; 
b) A person posting to the subsidiary ledger should not be 
allowed to record to the books of accounts; 
c)  A  loan/account  officer  shall  not  be  allowed  to  receive  and  disburse  loan 
proceeds,  for  and  in  behalf  of  the  borrowers,  and  accept  loan payments nor post to 
the subsidiary loan ledgers; 
d)  A  loan  officer/account  officer/collector  shall  not  be  allowed  to  use  the 
collections of any type in accommodating savings withdrawal; 
e) The functions of recording and signing of checks shall be 
separated; 
f)  Check  and  other  cash  items  shall  be  in  the  custody  of  an employee not handling 
cash  and  that  adequate  controls  are  properly  maintained  as  to  the  custody  and 
disposition of funds; 
g) The receipt of statements from depository bank shall be assigned to an employee 
other  than  the  one  connected  with  the  preparation,  recording  and  signing  of  bank 
drafts; 
h) Custodian of securities should not handle security transaction; 
i) Appraisal of collateral shall be done by an employee/officer 
who does not approve loans; 
j)  Incoming  checks  and  other  cash  items  shall  be  recorded  chronologically  in  a 
register  by  an  employee  other  than  the  bookkeeper  before  they  are  forwarded  for 
posting purposes; 
k) Credit report shall be prepared by a personnel other than loan 
officer, and 
Page | 45 
 
l)  Mailing  of  customer’s  statements  and  delinquent  notices  shall  be  done  by  an 
employee other than the one who granted the loan or the one handling the records. 
2.3 Official Receipts/Cash Acknowledgment Receipt 
a) The Cashier shall be responsible to the cooperative for all cash 
received and subsequent deposits thereof to the bank; 
b)  All  cash  receipts  are  acknowledge  with  pre-numbered  official  receipts  (OR) 
duly  registered  with  the  Bureau  of Internal Revenue, signed by the treasurer or any 
employee  authorize  to  receive  cash  collections  from  the  field  may  be  issued  with 
Cash  Acknowledgment  Receipt  (CAR)  that  may  take  place  of  a  Provisional 
Receipt; 
c) ORs/CARs must be issued in a triplicate copy: 
▪ original to the payor 
▪ duplicate to the accounting 
▪ triplicate to the file-stub 
d)  The  numerical  sequence  of  the  Ors/CARs  issued  by  the  treasurer/cashier  is 
checked by accounting staff before recording in the Cash Receipt Book; 
e) The accounting personnel compares the total amount of cash 
receipts against the validated bank deposit slips; 
f)  The  manager  shall  have  the  custody  of  the  unused  ORs/CARs  and  in  no  case 
shall  the  treasurer/cashier  handles  the  unused  ORs/CARs  except  those 
correspondingly issued to them for day to day operation; 
g) The manager shall keep track/check the unused OR/CAR; and 
h) All copies of cancelled ORs/CARs are stapled, preserved and 
retained in the booklet/stub and marked “CANCELLED”. 
Page | 46 
 
2.4 Cash Receipts and Deposits 
a) Cash received by the treasurer/cashier during the day shall be 
deposited in that day not later than the next banking day; and 
b) The Deposit Slip (DS) is prepared in three (3) copies and 
distributed, after validation by the bank, as follows: 
• original – to the bank 
• duplicate – to the accounting unit 
• triplicate – to the treasurer/cashier 
2.5 Recording of Receipts and Disbursement 
The  bookkeeper  shall  record  daily  the  receipt  of  cash  in  the  Cash  Receipt  Book 
(CRB) and vouchers paid to the Cash Disbursement Book (CDB). 
2.6 Bond of Accountable Officers 
a)  The  Manager,  Treasurer/Cashier  and  other  officers/employees  authorized  to 
handle cash must be covered by adequate bond; 
b)  The  Board  of  Directors  shall  determine  the  adequacy  of  bond  to  cover  the 
amount of possible losses or shortages that may arise in the handling of cash; 
c) The bond shall be retrieved and updated periodically by the 
Manager; and 
d) Copy of the bond to be furnished to CDA. 
2.7 Accounting Standards 
a)  The  officers and employees responsible for handling cash must be provided with 
a safety box or drawer to which he alone shall have access; 
b) Separate bank accounts should be maintained for grant funds, 
reserved funds and other special funds; 
Page | 47 
 
c)  The  bank  reconciliation  shall  be  prepared  by  the  bookkeeper.  In  no  case,  shall 
the  Treasurer/Cashier  be  allowed  to  prepare  bank  reconciliation.  Any  adjustment 
shall  be  taken  up  immediately  through  a  journal  voucher  duly  approved  by  the 
Chairman of the Board; 
d) All books of accounts and other financial records shall be filed 
in systematic and orderly manner by the bookkeeper; 
e) All due to or cash advances shall be reconciled regularly and 
liquidated within thirty (30) days; 
f)  Disbursement  of  Cooperative  funds  and  other  payments  must  be  within  the 
approved  budget  and  must  have  prior  authorization  from  the  Board  of  Directors 
and/or the General Assembly and always subject to availability of funds; 
g)  The financial statements must be prepared by the bookkeeper in conformity with 
the  generally  accepted  accounting and auditing procedures and the Standard Charts 
of  Accounts  adopted  by  the  CDA,  and  audited  by  an  independent  Certified  Public 
Accountant preferably accredited by the CDA; 
h)  The  Board  of  Directors  must  be  directly  responsible  in  the  management  of  the 
funds  and  assets  of  the  cooperative.  It  shall  prescribed  policies  to  ensure  its  safety 
from losses and fraud; and 
i) Access and use of cooperative property and premises must 
secure prior approval by the Board of Directors. 
2.8 Internal Control Standards 
a) Cash collection/disbursement and recording in the books of 
accounts must not be entrusted to one person; 
b) Use double entry system of bookkeeping; 
c) Prompt recording of transaction and periodic balancing of 
accounts; 
Page | 48 
 
d) Maintained a carefully prepared charts of accounts; 
e) Prepare monthly comparative financial statements for review 
of the Board of Directors; 
f) Deposits of all cash receipts intact daily, and making all 
payments in checks; 
g) Use of well-designed and serially numbered forms 
chronologically and proper control of these forms; 
h) The proper filing of used receipts invoices and cash vouchers 
together with supporting papers; and 
i) Compare accounting proofs and control such as: 
a. Budgets b. Monthly reconciliation of bank balances c. Use of imprest system of 
handling cash, revolving fund, 
petty cash and loan funds d. Periodic audited by Certified Public Accountant 
e. Use of Cash Register, adding machines, cash boxes and 
other mechanical equipment and physical safeguards. 
2.9 Audit Procedures 
a) Management Audit 
a.  Request  for  a  copy  of  the  By-Laws,  Articles  of  Cooperation  and  any 
amendments  to  see  if  they  conform  substantially  with  the  provisions  of  RA  9520 
and its implementing rules and the following must be looked into: 
• The full and exact name of the cooperative; 
• The date of incorporation/registration; 
• Capital structure; 
• Principal place of business; 
• The time, place and manner of calling and conducting BOD and GA whether 
regular or special meetings; 
Page | 49 
 
• The number of members necessary constitute a quorum; 
• The qualifications, duties and responsibilities of the BOD and management staff; 
•  The  time  of  holding  annual  GA,  the  mode  and  manner  of  electing  the  Board  of 
Directors and Committee Members; 
• The manner of issuing stock certificates or shares of stocks; and 
• The method of amending By-Laws. 
b.  Request  for  a  copy  of  the  minutes  of  meetings  of  the  General  Assembly  and  of 
the Board of Directors to examine the following: 
• Proper dating and signing of minutes; 
• Compensation of the Board of Directors, Committee Members and Management 
Staff; 
• Declaration of interest on share capital and patronize refund; 
• Authorization for: 
➢ Purchase and sale and shares of stocks; ➢ Purchase and sale of investments; 
and ➢ Construction, purchase or sale of property, 
plant and equipment. 
• Budget appropriations; 
• Depreciation policies; 
• Bond of Accountable officers; and 
• All contracts, leases, agreements, plans and others. 
b) Audit Procedure for Financial Audit 
a. Audit of the General Ledger – The examination of the 
general ledger is to check the accuracy of the: 
• Trial balance as taken from the general ledger at the beginning and at the end of 
the period; 
Page | 50 
 
• Posting of the books of original entry to the book of the final entry which is the 
general ledger; and 
• Footings in the general ledger accounts. 
b. Audit of the books of original Entry-In examining the 
records of original entry, be certain that: 
• All entries for the period under the examination are recorded; and 
• All entries for the succeeding period are not recorded in the period under 
examination. 
c. Audit of the General Journal 
•  Obtain  documents  supporting  the  entries  in  the  journal  such  as  vouchers, 
contracts, board resolution and others; 
• Trace amounts in all documents to the general journal; 
• Determine the equality of debits and credits for each journal entry; and 
• Check the posting accuracy of all general journal entries by tracing to the ledger 
accounts involved. 
d. Audit of Cash Receipt Book 
• Check the accuracy of all: 
➢ Footings and cross footings; and ➢ Posting to the general ledger and subsidiary 
ledger. 
• Vouch all receipts to the Cash Receipt Book; 
• Check if all official receipt are pre-numbered and used consecutively; 
Page | 51 
 
•  Account  for  all  numbers  in  the  official  receipts  and  require  satisfactory 
explanation for missing number or blank official receipt; 
• If a receipt has been cancelled, the original copy should remain intact or attach to 
the duplicate; 
• Ascertain that all: 
➢ Items in the OR/bank deposit slips are properly posted to the respective account 
title column in the book; and ➢ Cash received are supported by OR’s and 
recorded. Verify accounts in figures and words. They should be the same. Note any 
discrepancies. 
• Trace entries in the official receipts to the individual deposit and loan ledger. 
➢ Verify computation of: 
▪ Interest when it is collected as installment falls due; and 
▪ Fines on delinquent loans. 
e. Audit of the Cash Disbursement Book 
•  Account  for  all  numbers  if  cash  vouchers  are  pre-  numbered.  Determine  if  cash 
vouchers and the corresponding checks are used consecutively; 
• Obtain the names and specimen signatures of all persons authorize to approve the 
vouchers; 
•  Check  cash  vouchers  if  supported  with  proper  document;  e.g.  board  resolutions 
authoring the particular transaction, suppliers invoices and reports; 
Page | 52 
 
• Vouch cash voucher to accounting entries in cash disbursement book; 
• Compare paid checks to entries in cash disbursement voucher and tick off; 
• Prove the accuracy of: 
➢ Footings; ➢ Cross footings; and ➢ Posting from CDB to the general ledger and 
the 
subsidiary ledger both for debt and credits. 
f. Audit of Voucher and Invoices 
•  Compare  the  suppliers’  name  and  amount of each invoice with the corresponding 
name and amount appearing in the purchase book; 
• Examine the following: 
➢ Date of suppliers’ invoice to avoid duplication in 
recording; ➢ Correctness of quantity, unit prices, and 
extensions; ➢ Approval of payments; ➢ The invoice, if issued in the name of 
the 
cooperative; ➢ Check the entries of the invoices to the proper 
account titles; ➢ Ascertain that returns and allowances are charged 
to proper accounts; ➢ Investigate “duplicate” of every invoices; ➢ Determine 
the receipt of goods or services, preferably supported by receiving report; and, ➢ 
See to it that all supporting document are 
stamped “PAID”. 
Page | 53 
 
g. Paid Checks Examination 
In examining cleared checks in connection with cash disbursement. Consider the 
following points: 
• Examine checks that are outstanding at the beginning of the period; 
• Obtain all paid checks arranged in chronological order; 
• Account for all checks; 
• Watch for bank perforation dates to avoid submission of the checks; 
• See to it that: 
➢ The date, amount and payee of the checks are the same as those recorded in the 
Cash Disbursement Book; ➢ The check is signed by duly authorized persons; 
and, ➢ Endorsements are proper. ➢ List outstanding checks to avoid any 
attempt to 
cover fraud; ➢ In the preparation of bank reconciliation, deduct outstanding 
checks from the banks balance to arrive at the balance per book; and, ➢ Note any 
check issued, that is pay to “CASH” and investigate to whom, when and for what 
obligation. 
h. Audit of the Sale Book 
• Prove the accuracy of all: 
➢ Footings; ➢ Post to the general ledger and subsidiary ledgers: 
and; ➢ Account distribution. 
Page | 54 
 
• Compare: 
➢ Duplicate copies of sales invoices with the sales journal entry, all the invoices 
must be recorded; and, ➢ Sales journal entries with delivery record and 
order files. 
• In vouching sales and sales returns, ascertain that: 
➢ Sales made at the end of the period are not 
included in the inventory; ➢ This is determined by examination of shipping 
or 
delivery records; ➢ Sales returns and allowances are properly 
recorded; ➢ Sales returns credit memoranda are properly 
approved; ➢ Entries in the sales book must be supported by check sales 
invoices or cash sales invoices as reflected in the duplicate copies; ➢ Customers 
must be “genuine” to avoid inventory 
misappropriation; ➢ The customers are charged with transportation cost when 
it is agreed upon both parties; and ➢ Sales invoices are consecutively numbered 
and 
properly controlled. 
i. Audit of Subsidiary Ledger 
•  Obtain  and  check  subsidiary  ledger  schedule  and  compare  total  with  the  general 
ledger controlling account; 
• Verify: 
➢ Names and account balances in the schedule 
against the subsidiary ledgers; ➢ The correctness of footing; and, ➢ Posting 
from the original documents to related 
accounts in the subsidiary ledgers. 
Page | 55 
 
c) Audit Procedures In Various Account 
a. Cash on Hand and Bank 
• Obtain confirmation directly from the bank; 
• Count and list all cash items on hand; 
•  Compare  un-deposited  checks  on  hand  with  date  from  cash remittance slip/ daily 
cash position report and entries in the cash receipt book; 
• Trace all check and accuracy on hand to subsequent deposit slip and to bank 
statement; 
• Obtain all bank statement, duplicate deposit slip and paid checks; 
•  Compare  paid  check  with  outstanding  checks  per  prior  bank  reconciliation  and 
with the cash disbursement book; 
• List all checks payable to cash/ bearer, payroll banks, officers and employee, etc. 
• List and investigate checks that have been outstanding for a long period of time. 
b. Audit Procedure for Petty Cash Fund and Other Funds 
• Simultaneously control all cash, negotiable instrument and notes to be accounted; 
• Count and list all items in each fund; 
•  Reconcile  the  amount  of  each  fund  with  the  general  ledger  account  balances  at 
the date of balance sheet or cash count date; 
• Trace all checks in the funds to subsequent deposit slips and to the bank 
statement; 
Page | 56 
 
• Vouch the petty cash fund or other fund vouchers to the reimbursement/ 
replenishment voucher; 
• Verify footings and cross footings of the reimbursement and replenishment 
voucher; 
• Trace reimbursement/replenishment vouchers to the voucher register and cash 
disbursement book; 
•  Obtain  the  signature  of  the  petty  cash  or  other fund custodian acknowledging the 
return of the cash, vouchers and other fund items; 
•  Obtain  approval  from  a  responsible official of all vouchers, promissory notes and 
employees checks included in the fund; 
• Obtain from a responsible official acceptance of and written confirmation of any 
storage in the fund; and, 
•  Obtain  confirmation  direct  from  persons  of  the  amount  of  cash  taken  from  the 
fund held by them at the end of the year. 
c. Audit Procedure of Account Receivable 
•  Check  and  compare  the  total  of  the  schedule  of  accounts  receivable  with  the 
balance of account receivable to the general ledgers; 
• Age the account receivable; 
• Confirm the accounts receivable; 
• Determine the validity of account receivable; 
• Identify the list account receivable whose balance exceed credit policies of the 
cooperative; 
• Determine proper cut-off of sales record; 
• Verify collection on delivery accounts; 
Page | 57 
 
• Test discount, returns and allowances; 
• Reclassify consignment accounts; 
• Segregate and identify account receivable from affiliated cooperatives; 
• Determine pledge accounts and customer equity; and, 
• Verify and determine the adequacy of the allowance for uncollectible accounts. 
d. Audit Procedure of Loans Receivable 
• Reconcile total of outstanding loans with controlling account in the general 
ledger; 
• Age of loans receivable; 
• Confirm the loans receivable; 
• Determine the adequacy of the allowance for doubtful accounts; and, 
•  Test  check,  if  practicable,  at  least  25%  of  the  total  passbooks  issued  with  their 
respective individual deposits and loan ledger. 
e. Audit Procedure of Accounts Payable 
• Request for schedule of account payable; 
•  Compare  the  total  of  the  schedule  and  the  account  payable  balance  per  general 
ledger and verify any difference; 
• Vouch credits and debits; 
• Confirm account payable; 
• Examine: 
Page | 58 
 
➢ Debit balance of account payable; ➢ Statement of creditors; ➢ Records of 
subsequent period; ➢ Invoice distribution; ➢ Discounts; and, ➢ Liability for 
purchase commitments. 
• Analyze accounts payable by aging; 
• Verify long outstanding obligations; 
• Test invoices with receiving and store records; 
• Ascertain liability for consigned materials; and, 
• List separately amounts due to officers and employees. 
f. Audit Procedure of Loans Payable 
• Request for the schedule of loans payable; 
• Determine membership authority to borrow; 
• Vouch loans proceed and principal payments; 
• Check the computation of interest, fines and surcharges; 
• Confirm and verify loan principal and interest; and, 
• Determine utilization of loan proceeds. 
g. Audit Procedure of Share Capital 
• Request for a schedule of subscribed and paid up share capital; 
• Determine amount of authorized share capital from the Article of Cooperation; 
• Verify and vouch entries in the share capital account; 
Page | 59 
 
• Compare: 
➢  Schedule  of  subscribed  and  paid  up  share  capital  balances  with  the  controlling 
accounts in the general ledger; 
➢ List of members with schedule of paid up share 
capital; 
➢ Amount appearing in the stock and transfer book 
with the stockholders/ members’ stock certificate; 
➢ Determine balance with subscribed share capital; 
➢ Identify members whose subscribed share capital 
are not yet paid; 
➢ Account of all outstanding shares; 
➢ Check and ascertain: 
- Computation of interest on share capital and 
patronage refund; and, 
- Whether the amount appearing in the book of 
account are correspondingly valued and paid. 
➢ Confirm members share capital accounts. 
h. Audit Procedure of Savings Deposit 
• Request for schedule of savings deposit; 
•  Compare  the  total  of  schedule  of  savings  deposit  balance  with  the  controlling 
account in the general ledger; 
• Vouch deposit and withdrawals in the savings deposit account; 
• Ascertain whether: 
Page | 60 
 
➢  The  amount  of  interest  on  savings  deposits  are  properly  computed  and 
correspondingly credited to the members savings deposits account; 
➢  The  account  appearing  in  the  statement  of  financial  condition  are  actually 
received and properly valued; and, 
➢ The requirements in the maintenance of savings 
deposits are properly observed. 
• Determine: 
➢ Movement of the account; and, 
➢ Compliance with the withdrawal policy of the 
cooperative. 
• Confirm balances of savings/time deposits directly from members; 
i. Audit Procedure of Inventories; 
• Compare original count tags or sheets with inventory summaries; 
• Verify extensions, footings, and total summaries; 
• Compare inventory summaries with subsidiary and controlling ledger accounts; 
• Test quantities of inventories; 
• Determine proper cut-off for purchases and sales; 
• Ascertain the propriety of the treatment of goods in transit and goods consigned 
in and out; 
• Confirm merchandise in storage/warehouse; 
• Examine purchase commitments; 
Page | 61 
 
• Test the pricing of the inventory; 
• Compare inventory prices and sales prices; 
• Eliminate inventory profits; 
• Segregate pledged inventories; 
• Apply the gross profits test; 
• Ascertain inventory turn-over; 
• Examine scrap materials procedures; 
• Determine the propriety and adequacy of insurance coverage; and, 
• Audit the inventories by comparison. 
j. Audit Procedures of Cash Advances to Officers and 
Employees 
• Request for schedule; 
• Confirm, necessary; and; 
• Determine if policy on advance is practiced, who approves; how much and when 
liquidated. 
k. Audit Procedure of Supplies Inventories 
• Test: 
➢ Quantities; ➢ Prices; and, ➢ Mathematical computations. 
l. Audit Procedure of Sales and Other Revenue 
• Verify: 
Page | 62 
 
➢ Sales and other revenues through the audit of sales invoices official receipt, 
sales report, delivery receipts and cash and sales receipts books of accounts; ➢ 
Extensions, footing, crossfootings of source 
documents and books of accounts; ➢ Sales returns and discounts; and, ➢ 
System of internal control. 
• Compare prices on invoices with price lists; 
• Trace: 
➢ Sales from invoices to the sale records; and, ➢ Sales records postings to the 
individual subsidiary 
ledgers. 
• Check/examine: 
➢ Shipping/delivery records; ➢ The accounting for prepaid transportation 
charges; ➢ Revenue accounts to establish the accuracy of the 
related assets; and, ➢ Unrecorded income. 
m. Audit Procedure of Expenses 
• Review internal control system for expenses; 
• Verify: 
➢ Authority to disburse; ➢ Availability or source of fund; and ➢ Compliance 
with existing laws and regulations 
relative to pertinent expenses of the cooperative. 
• Compare and analyze current expenses with similar expenses of prior period; 
• Determine the propriety of expense account classification; 
• Analyze expense accounts to ascertain if they are necessary in the operation of 
the cooperative; 
Page | 63 
 
• Watch for items charged to expense which should be capitalized; 
• Inspect expense vouchers for major items especially miscellaneous expense; 
• Ascertain that all expenses recorded are legitimate expenses; and 
• Compare each expense with the approved budget. 
Cooperative Approving and Signing Authorities (CASA) 
Transactions 
Approving Person / Body 
Signing Person 
1. Approval of Membership 
BOD Chairperson 
2. Application and Withdrawal of 
Membership 
BOD Chairperson 
3. Expulsion of Membership 
BOD Chairperson 
4. Declaration of Membership Status Whether in Good or Not in Good Standing 
BOD Chairperson 
5. Removal of Board of Directors, Audit 
and Election Committee 
GA Chairperson 
6. Signing of Certificate of Share Secretary / 
Chairperson 7. 
Show Cause Order/Written Warning 
BOD Chairperson 
8. Issuance of BOD and GA Resolutions 
BOD/GA SEC/Chairperson 
9. Suspension of Rights, Benefits and 
Privileges of members and staff 
BOD Chairperson 
10. Signing of Notices to Implement 
Approved Disciplinary Actions Against Officers, Members and Staff 
BOD 
SEC / Chairperson 
11. Approval of Membership on Apex BOD Chairperson 
Page | 64 
 
Approving Transactions 
Person / Body 
Signing Person 
Organization and Cooperative Bank 
12. Opening of Savings and Deposits and 
Withdrawals of Members 
MGR / Treasurer 
13. Opening of Savings and Deposits to 
other Banks 
BOD 
Chairperson / Treasurer 
14. Approval of policies 
BOD BOD 
15. Approval of Loans 
BOD 
Credit Committee / BOD 
CRECOM / BOD 
16. Release of Loans 
MGR Treasurer 
17. Approval and Signing of Contracts / 
Agreements 
BOD Chairperson 
18. Approval of Restructuring of Loan 
BOD Chairperson 
19. Signing of Collection Letters 
MGR 
20. Signing of Letter and Other 
Communication 
Chairperson 
21. Granting of Authority to Invest 
GA BOD 
22. Appointment of Staff, Consultant and 
Special Committee Membership Including Termination Thereof 
BOD Chairperson 
23. Approval and Imposition of 
Disciplinary Action on Officers, members and Staff 
BOD Chairperson 
24. Acceptance of Resignation of 
Officers, Members and Staff 
BOD Chairperson 
25. Participation in Training, 
Conferences, Seminars and Field Trips 
BOD Chairperson 
Page | 65 
 
Approving Transactions 
Person / Body 
Signing Person 
26. Approval of Leave of Absence for a 
Staff 
Chairperson MGR 
27. Approval of Procurement and 
Purchase of Non-Expendable Items such as land, building and other Capital 
Expenditures 
GA BOD 
28. Approval of Procurement and 
Purchase of Expendable Items such as Supplies and Materials 
BOD MGR 
29. Approval of Establishment of Office 
and Sub-Offices 
BOD Chairperson 
30. Approval of Travel 
BOD Chairperson 
31. Approval of Cash Advances, 
Reimbursement of Representation and Travel Expense 
BOD Chairperson 
32. Approval of Advertising, Promotion 
and Printing Matters 
BOD Chairperson 
33. Approval of Maintenance of 
Operating Expense (MOE) and Recurring Expenses Necessary for Operations such 
as Electricity, Water, Telephone and Rent 
BOD Chairperson 
34. Approval of Payroll and Other 
Related Personnel Expenses 
Chairperson MGR 
35. Approval and Setting Up of Petty 
Cash Fund 
Chairperson MGR 
36. Approval of Opening of Credit Line 
from any Source 
BOD Chairperson 
Page | 66 
 
QPSTECC OFFICERS FOR COOPERATIVE YEAR 2015-2016 
CHAIRPERSON : MR. REYNALDO S. LUNA VICE-CHAIRPERSON : MR. 
RONALDO V. GARCIA DIRECTORS : MS. EDNA L. CABRERA 
MS. CONSORCIA E. OLIVERA MR. CELSO A. LICAS 
SECRETARY : MR. ORLANDO V. ORNEDO TREASURER : MR. RODOLFO M. 
DELA PEÑA 
AUDIT COMMITTEE ELECTION COMMITTEE 
MR. GERONIMO G. SANTOS MS. LEA A. COSICO MR. BRICCIO P. UMBAN MS. 
ISABELITA C. CABANGON MS. SHIELA E. JAVEN MS. LUZ A. ABUSMAS 
EDUCATION, TRAINING & MEDIATION & CONCILIATION ETHICS COMMITTEE 
INFORMATION COMMITTEE COMMITTEE 
MR. RONALDO V. GARCIA MS. FLORIDA O. AGUILA MS. DIOSA C. MAYORES MR. 
REYNALDO S. LUNA MR. YOLANDA C. AYUMA MS. ARSENIO A. CASIÑO MS. EDNA 
L. CABRERA MS. MELVA M. RAMA MS. IRENE D. PANDY MS. CELSO A. LICAS MS. 
CONSORCIA E. OLIVERA 
MANAGEMENT STAFF 
MANAGER : MS. HENNIE R. AMBAS ACCOUNTANT : MS. SEGUNDINA DULCE F. 
DEQUINA CASHIER : MS. ROSSLEE O. TAN LOAN OFFICER : MS. YOLANDA A. 
MANGA RECORDS CLERK/ACCOUNT ANALYST : MS. LORY P. MONTES MEMBER 
SERVICE PREPRESENTATIVE : MISS CRISTINA F. ALVAREZ UTILITY/MESSENGER : 
MR. ALDREX F. GUINTO 
Page | 67 
 
POSITION CLASSIFICATION AND SALARY SCHEME (PCSS) 
OVERVIEW 
The  rationale  of  the  creation  of  the  Position  Classification  and  Salary 
Scheme  (PCSS)  is  to  have  a  methodical  and  orderly  basis  on  the 
position/designation  and  compensation  of  the  QPSTECC  Personnel  that  will 
guide  the  Board  of  Directors  in  the  appointment  of  its  employees  and  their 
corresponding  salary.  This  is  also  to  uplift  the  economic  status  of  the 
employees as well as to maintain qualified and competent staff. 
PRINCIPLES GOVERNING PCSS 
➢ The QPSTECC Personnel shall be paid just and equitable wages in 
accordance with the principle of equal pay for substantially equal work. 
Differences in pay shall be based upon substantive differences in duties and 
responsibilities and upon the qualification requirements of positions. ➢ Basic 
compensation for all personnel must be in accordance 
with prevailing laws on minimum wages. ➢ The total compensation 
provided for the QPSTECC personnel must be maintained at a reasonable 
level in proportion to the Cooperative’s Annual Budget. ➢ Step Increments 
due to Length of Service shall be granted to qualified personnel for every 
three (3) years of continuous satisfactory service in the present position. The 
grant of step increment to an employee on leave of absence with or without 
pay more than three (3) months shall be deferred corresponding to the period 
of such absence/non-performance of actual duties and responsibilities of 
his/her position to complete the service and performance rating requirements. 
➢ A review of personnel compensation rates taking into account possible 
erosion in purchasing power due to inflation and other factors shall be 
conducted periodically. 
Page | 68 
 
Accordingly,  the  PCSS  will  form  part  of  the  QPSTECC  Operational 
Manual  specifically  part  XII.  Suweldo,  Allowace,  at  iba  pang 
Kompensasyon  of  Patakaran  Pangkawanihan  at  mga  Gawaing 
Pampangasiwaan. 
Through  the  conscientious  study  of  the  Personnel  Ad  Hoc  Committee 
on  the  Organizing  and  Standardizing  the  Salary  of  Employees,  the 
POSITION  CLASSIFICATION  TABLE,  BASIC  MONTHLY  SALARY 
LEVELS  AND  THE  SALARY  OF  EMPLOYEES  EFFECTIVE  JANUARY 
01, 2014 have been conceptualized and created as follows: 
QUEZON PUBLIC SCHOOL TEACHERS AND EMPLOYEES CREDIT 
COOPERATIVE LUCENA CITY 
BASIC MONTHLY SALARY LEVELS 
APPROVED AS PER BOD RESOLUTION NO. 44-2013 
SALARY GRADE 
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 
1 8000 8080 8160 8240 8320 2 8400 8484 8568 8652 8736 3 8820 8908 8996 
9085 9173 4 9261 9354 9446 9539 9631 5 9724 9821 9919 10016 10113 6 10210 
10312 10414 10517 10619 7 10721 10828 10935 11042 11150 8 11257 11369 
11482 11595 11707 9 11820 11938 12056 12174 12292 10 12411 12535 12659 
12783 12907 11 13031 13161 13292 13422 13552 12 13683 13820 13956 14093 
14230 13 14367 14511 14654 14798 14942 14 15085 15236 15387 15538 15689 
15 15839 15998 16156 16315 16473 16 16631 16798 16964 17130 17297 17 
17463 17638 17812 17987 18162 18 18336 18520 18703 18886 19070 
Page | 69 
 
19  19253  19445  19638  19831  20023  20  20216  20418  20620  20822  21024  21 
21226  21439  21651  21863  22075  22  22288  22511  22733  22956  23179  23  23402 
23636  23870  24104  24338  24  24572  24818  25064  25309  25555  25  25801  26059 
26317  26575  26833  26  27091  27362  27633  27904  28174  27  28445  28730  29014 
29299  29583  28  29868  30166  30465  30764  31062  29  31361  31675  31988  32302 
32615  30  32929  33258  33588  33917  34246  31  34576  34921  35267  35613  35959 
32  36304  36667  37030  37393  37756  33  38120  38501  38882  39263  39644  34 
40026  40426  40826  41226  41627  35  42027  42447  42867  43288  43708  36  44128 
44569  45011  45452  45893  37  46335  46798  47261  47725  48188  38  48651  49138 
49624  50111  50597  39  51084  51595  52105  52616  53127  40  53638  54174  54711 
55247  55784  41  56320  56883  57446  58010  58573  42  59136  59727  60319  60910 
61501  43  62093  62714  63335  63955  64576  44  65197  65849  66501  67153  67805 
45 68457 69142 69826 70511 71195 
Page | 70 
 
BENEFITS OF EMPLOYEES 
BENEFIT DESCRIPTION PERIOD OF ENTITLEMENT 
1. VACATION LEAVE FIFTEEN (15) WORKING DAYS Upon regularization. 
Note: Unconsumed Vacation Leave is cumulative and commutative. 
2. SICK LEAVE FIFTEEN (15) WORKING DAYS Upon regularization 
Note: Unconsumed Sick Leave is cumulative and commutative. 
3. SALARY LOAN 
BASIC PAY X 3 PAYABLE UP TO 2 YEARS; INTEREST SAME AS APDS APPROVED After one (1) year of 
continuous 
INT.; NO SERVICE FEE; SALARY DEDUCTION service at the cooperative. 
4. ALLOWANCES 
SIX (6) Months 
(Probationary A. PROBATIONARY P1,000.00 ALLOWANCE 
Period) Upon regularization, an B. COLA P 2,000.00 
employee C. PERA P 
2,000.00 shall received: D. ECONOMIC 
1ST & 2ND YEAR IN 
SERVICE - ALLOWANCE P 2,000.00 
COLA 3RD & 4TH YEAR IN SERVICE - COLA &PERA 5TH & 6TH YEAR IN SERVICE - COLA, PERA & 
EA *Services should not be interrupted with more than 6 months leave of absence 
with or without pay. 
5. PATERNITY AND/OR AS PROVIDED BY LAW AS PROVIDED BY LAW 
MATERNITY LEAVE *on maternity leave shall be entitled to 
monthly allowance and one (1) month salary. As per BOD Resolution #42-2014 
6. 13th MONTH PAY AS PROVIDED BY LAW AS PROVIDED BY LAW 7. CLOTHING ALLOWANCE 
P5,000.00 EVERY YEAR 
Upon regularization; Every January 
8. MEDICAL ALLOWANCE 
Upon regularization:Presentment of Receipts for the medical expenses is necessary. 
9. MONETIZATION 
P15,000.00; Medicines, Laboratory & other medical expenses REGULAR - refers to the use of vacation leave 
credits only provided that At least One (1) year in service at least five (5) days vacation leave credits are retained 
after the 
after regularization (every January) 
monetization. SPECIAL - refers to the use of accumulated vacation leave and sick leave credits provided that at least 
fifteen (15) days vacation leave credits and fifteen (15) days sick leave credits or a total of thirty (30) days 
accumulated 
Page | 71 
 
leave credits are retained after the monetization. Computation: Monthly Salary x 10 days X 0.0478087 (Constant 
Factor) 
= Money Value of Monetized Leave 10. LOYALTY CASH AWARD 
Given to employees who have completed at least ten (10) years and five (5) as stated. years thereafter of continuous 
and satisfactory service. A cash gift of Php1,000.00 for every year of service shall be given to qualified employees. 
11. OTHER BONUSES AND 
Depends on the income of the Cooperative and discretion of the Upon regularization 
INCENTIVES Board of Directors. 
Page | 72